COBRA Health Insurance Cost Calculator
Calculate COBRA continuation health insurance costs vs Marketplace (ACA), spouse plan, or short-term insurance alternatives after job loss.
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What COBRA Is — And Why It's Usually Bad Value?
COBRA (Consolidated Omnibus Budget Reconciliation Act) allows you to keep your employer health insurance for up to 18 months after job loss, but you pay BOTH your share AND your former employer's share, plus a 2% administration fee. Average COBRA cost in 2024: $750/month for self, $2,100/month for family. The reason: employers typically pay 70-85% of the actual premium. Once you're paying full freight, you discover what the insurance really costs. Most people elect COBRA out of panic without comparing it against ACA marketplace plans, which can often be considerably cheaper for the same or similar coverage.
What should I know about Marketplace (ACA) — The Better Option for Most?
Healthcare.gov / state Marketplaces offer Affordable Care Act plans with income-based subsidies. American Rescue Plan + Inflation Reduction Act extended enhanced subsidies through 2025 — most people earning under 400% of Federal Poverty Level pay capped percentages of income for benchmark plans. Example: family of 4 earning $60,000 (about 230% FPL) pays approximately $200/month for a Silver plan vs $2,100/month COBRA. Job loss is a Qualifying Life Event — you have 60 days to enroll on Marketplac
When COBRA Actually Makes Sense?
COBRA is the right choice when: (1) You've already hit your deductible/OOP max — switching plans resets these to zero. A family that's hit a $14,000 OOP max in October would lose all that progress by switching mid-year. (2) You have a complex ongoing medical situation — specific doctors in-network, specific medications covered. (3) Your COBRA is heavily subsidized by employer (some severance packages include 6+ months of employer-paid COBRA). (4) You expect to return to employment quickly, under 2-3 months, since COBRA guarantees continuity of the exact same plan and provider network without any gap or need to find new doctors.
What do I need to know about Short-Term and Catastrophic Alternatives?
Short-term medical insurance: 1-12 months coverage, NOT ACA-compliant (no pre-existing condition coverage, limited mental health/maternity). Cheap ($100-300/month) for healthy people. Avoid if you have any health conditions. Catastrophic plans on Marketplace: available only to under-30s and those with hardship exemption. Very high deductibles ($9,000+) but cover three primary care visits and preventive care 100%. Healthcare sharing ministries, such as Medi-Share, Christian Healthcare Ministries, and Liberty HealthShare, are not technically insurance and carry real risk of claims being denied, so they should be researched carefully before relying on one.