Guide · US edition · Updated 2026-10-29

COBRA vs. Marketplace After a Layoff: How To Choose

Losing a job usually means losing employer health coverage. You typically have three or four options, and each has a deadline.

Option 1: COBRA

COBRA lets you keep your same employer plan (same doctors, same deductible progress). Under Department of Labor rules:

You have at least 60 days to elect COBRA after you get the election notice (or after coverage ends, whichever is later)
You then have 45 days after electing to make the first payment
You can be charged up to 102% of the full cost, the employer's share plus yours
Coverage is usually available for 18 months after a job loss
If you elect on time, coverage is retroactive to the day it ended

COBRA generally applies to employers with 20 or more employees; many states have "mini-COBRA" laws for smaller employers.

Option 2: The Health Insurance Marketplace

Losing job-based coverage qualifies you for a Special Enrollment Period, generally 60 days before or after losing coverage, at HealthCare.gov or your state's exchange. With lower income, you may qualify for premium tax credits that can make it much cheaper than COBRA.

Option 3: A spouse's or partner's plan

Losing coverage is a qualifying event for their employer plan too, usually with a 30-day window. Ask their HR right away.

Option 4: Medicaid / CHIP

If your income drops enough, you or your children may qualify. You can apply any time.

How to compare

	COBRA	Marketplace	Spouse's plan
Monthly premium
Deductible left this year
Doctors in network?
Prescriptions covered?
Deadline

Tip: if you're mid-treatment or have already met your deductible, COBRA can be worth it for a few months. If not, the Marketplace is often cheaper.

General information, not legal or financial advice.

The Laid-Off Action Kit includes a health coverage comparison page with every deadline.

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