When job-based health coverage ends, you usually have two main choices. You can keep the same plan through COBRA, or you can buy a new plan on the Marketplace.
This guide compares the deadlines, the cost, the tax credit, and when you can switch. It covers federal rules. If you are in Florida and lost your job, our Florida job-loss guide covers other options too.
What COBRA is
As of October 14, 2026, under current law, COBRA is a federal law. The U.S. Department of Labor says it generally applies to job-based plans at employers with 20 or more employees last year.
COBRA lets you keep the same health plan you had at work. The Department of Labor says that usually means the same benefits and the same doctors. Your spouse and children may sign up even if you don't.
COBRA usually lasts up to 18 months. Some life events can stretch it to 36 months.
Florida has its own continuation law for small employers with fewer than 20 employees. Under that law, you must notify the insurance company within 63 days after the qualifying event. The premium generally can't be more than 115% of the plan's normal premium.
The deadlines
Both choices have a 60-day window, but they don't start the same way.
- COBRA: The Department of Labor says you have 60 days to sign up. The clock starts when your job-based coverage ends or when you get your COBRA election notice, whichever is later.
- Marketplace: HealthCare.gov says you can enroll within 60 days of losing job-based coverage. You can also apply up to 60 days before you expect to lose it.
Don't wait until the last day. Check the dates on your own notice and on HealthCare.gov.
What each one may cost
With COBRA, you usually pay the full premium. That includes the part your employer used to pay. The Department of Labor says you may be charged up to 102% of the plan's cost. Some employers agree to pay part of it as part of a separation deal.
Hypothetical example, using national averages only: KFF's 2025 survey found average yearly job-based premiums of $9,325 for single coverage. For family coverage, it was $26,993. At 102%, single coverage would be about $9,512 a year, or about $793 a month. Family coverage would be about $27,533 a year, or about $2,294 a month. Your plan's real cost will be different.
With a Marketplace plan, your cost depends on the plan you pick and your household income for the year you are covered. Many people can get a premium tax credit to lower the monthly cost. As of October 14, 2026, under current law, the credit for 2027 coverage is generally only for household incomes up to 400% of the poverty line. See our guide to the 2027 ACA subsidy cliff, or try our Policy Pricing Calculator for a rough first look.
Compare more than the premium. Look at the deductible, the out-of-pocket limit, and the network too. Our guide to PPO vs HMO plans explains how networks differ.
How COBRA affects the tax credit
Being offered COBRA doesn't block a Marketplace tax credit. The IRS says you can turn down COBRA from a former employer. You may still be eligible for the credit.
But if you sign up for COBRA, things change. IRS Publication 974 says you count as eligible for COBRA only in the months you are enrolled. For those months, you can't get a premium tax credit.
Not sure what your income will be? See our guide on how to estimate your income for Marketplace insurance. A tax pro can help too.
Switching from COBRA to a Marketplace plan
HealthCare.gov says it depends on when and why you switch:
- During Open Enrollment, you can switch to a Marketplace plan for any reason.
- Outside Open Enrollment, you can switch if your COBRA is running out.
- You can also switch if your former employer stops paying its share and you must pay the full cost.
- You can also switch if it's still within 60 days of losing your job-based coverage.
Say you drop COBRA early on your own, or stop paying for it. That doesn't qualify you for a Special Enrollment Period. You would have to wait for the next Open Enrollment, unless you have another life event. When COBRA runs out on its own, you have 60 days to enroll in a Marketplace plan.
As of October 14, 2026, under current law, Open Enrollment for 2027 coverage runs November 1, 2026, to January 15, 2027. A court case about these dates is still on appeal, so check HealthCare.gov. See every date in our Florida open enrollment guide.
HealthCare.gov also says to check your new plan's start date before you end COBRA, so you don't have a gap.
Other options
If your income is low, you may qualify for Medicaid or CHIP. HealthCare.gov says you can apply for those any time. It also says to wait for a final decision before you end COBRA.
Some people also look at a private PPO plan sold outside HealthCare.gov. It is not a Marketplace plan and can't get a tax credit. Some private plans ask health questions, and approval is not guaranteed. Some may not cover care for health problems you had before you enrolled. See our page on nationwide private PPO health insurance.
Daniels Health Advisors is licensed in 30+ U.S. states. We can help you compare a COBRA offer with Marketplace plans.