COBRA, and when a Marketplace plan is the better deal
Lost your job-based coverage? COBRA lets you keep the same plan for a while, but you pay the full cost. Here is how it compares.
Last checked October 13, 2026 · Written by licensed advisors · Sources are numbered and listed under Notes and sources
What is COBRA insurance?
COBRA lets you and your family keep your employer's health plan for a limited time after you leave the job or lose eligibility, usually up to 18 months. It applies to employers with 20 or more employees; Illinois has its own continuation rules for some smaller employers.1
- Coverage endsYou leave the job or lose eligibility (key step)
- Within 60 daysSpecial enrollment window for a Marketplace plan
- Up to 18 monthsHow long COBRA usually lets you keep the employer plan
How does COBRA work?
After a qualifying event, such as leaving a job, you can choose to keep your employer’s plan. You pay the full premium plus up to a 2% fee, usually for up to 18 months.1
How long does COBRA last?
COBRA usually lasts up to 18 months after you leave the job or lose eligibility. Some situations can extend it, so ask the plan administrator.1
How much does COBRA cost?
You pay the whole premium yourself, including the part your employer used to pay, plus up to a 2% fee. That is often much more than you paid while working.2
The Marketplace alternative
Losing job-based coverage usually gives you 60 days of special enrollment for a Marketplace plan, where a tax credit may lower the cost based on your income.
If you choose COBRA and later drop it on purpose outside open enrollment, that usually does not open a special enrollment window. Compare both before you decide.2
- Same plan as at work
- You pay the whole premium, plus up to 2%
- Dropping it on purpose usually doesn’t open a new window
- 60 days to enroll after losing job coverage
- A tax credit may lower the cost, based on income
What to do: Call us within the 60 days. We compare COBRA with every Marketplace option for your income.
Obamacare Hotline and/or Medicare Po Polsku are private companies not affiliated with any local, state, or federal government agency. This guide is general information, not tax or legal advice.