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COBRA Too Expensive? Here's What to Compare
COBRA premiums often come as a shock because you're paying the full cost your employer used to help cover, plus a fee. Here's why, and what to compare it against.
COBRA is usually expensive for one specific reason: your employer was quietly paying a large share of your premium while you worked there, and COBRA removes that subsidy. You pay the full group-plan rate, plus up to a 2% administrative fee.
Why COBRA costs so much more than what came out of your paycheck
Employers typically cover a majority of a group health premium. COBRA continues your exact plan, but you now pay the full amount your employer was covering, on top of your own original share.
- You pay 100% of the premium, not just your former payroll deduction
- Plus up to a 2% administrative fee
- Same plan and network -- the coverage itself doesn't change
The real comparison: your COBRA quote vs. a real Marketplace number
An ACA Marketplace plan may include a premium tax credit based on your income, which can make it cost meaningfully less than COBRA -- especially if your income has dropped. The only way to know is to compare your actual numbers.
Your next step
Enter your real COBRA quote and household details for a real comparison, not a guess.
Also worth a look:
Common questions
Can I switch from COBRA to a Marketplace plan later?
Losing job-based coverage (including COBRA running out at the end of its term) can open a Special Enrollment Period. Voluntarily dropping COBRA early, outside of your own enrollment window, does not on its own open a new one.
Is Marketplace coverage always cheaper than COBRA?
Not always -- it depends on your income and the specific plan. The COBRA vs. Marketplace comparison tool uses the published ACA formula against your real COBRA quote so you're comparing real numbers, not guessing.
Is there anything besides COBRA and Marketplace coverage worth considering?
For some people, a short-term plan is worth understanding as a third option -- though it works very differently, with medical underwriting and pre-existing condition exclusions that COBRA and Marketplace coverage don't have.
Questions are easier by phone.
Call 855-367-1095 to talk through your situation with licensed insurance help.
- Licensed insurance help
- No guaranteed eligibility, pricing, or availability
- Educational starting point
Information on this site is educational and does not guarantee eligibility, enrollment, pricing, or availability. It is not a recommendation to buy any specific plan or policy.