Short answer: COBRA keeps your old employer plan for up to 18 months after you leave a job, but you pay the whole premium plus up to 2%. At 2026 average premiums that is about $10,000 a year for one person and $28,870 for a family. The alternatives are a marketplace plan, which losing job coverage lets you choose within 60 days; a spouse’s employer plan; or, for a healthy household above the subsidy line, a medically underwritten private plan, which can cost less but asks health questions and is not ACA coverage. (Reviewed by Daniel Griffin, licensed independent advisor, NPN #22052447.)
What COBRA Costs
| Average 2026 premium | What the worker paid at work | COBRA, at the 102% maximum | |
|---|---|---|---|
| Employee only | $9,804 a year | $1,672 a year | about $10,000 a year ($833 a month) |
| Family | $28,303 a year | $7,471 a year | about $28,870 a year ($2,406 a month) |
Premiums and worker contributions from the KFF 2026 Employer Health Benefits Survey. The 102% limit is set by federal law; your plan’s own figure is in your election notice.
The Alternatives, Cheapest Fit First
- A marketplace plan. Losing job-based coverage lets you choose a plan within 60 days before or after the loss. For 2027 coverage the tax credit runs up to 400% of the poverty line ($63,840 for one person, $132,000 for a family of four), and it is based on this year’s expected income, not the old salary. The full comparison is in COBRA vs the marketplace.
- A spouse’s employer plan. Losing your coverage lets you join a spouse’s plan mid-year; employer plans must allow at least 30 days to ask.
- A medically underwritten private plan, for a healthy household above the subsidy line. It is priced on health rather than income, can start in any month and can cost much less than COBRA. It can also decline you, and like other non-ACA plans it usually excludes pre-existing conditions and maternity care.
- A short-term plan, as a bridge only. How long one can last depends on federal and state rules, and it covers nothing that started before it did.
When COBRA Is Still the Right Call
Keep COBRA when you are in the middle of treatment or pregnant and need the same doctors, when you have already met most of this year’s deductible, or when a former employer pays part of the COBRA premium as severance. For everyone else it is the most expensive way to stay covered.
Use the 60-Day Election Window as a Safety Net
Your plan must give you at least 60 days to elect COBRA, counted from the later of the date of the election notice and the date your coverage ends, and at least 45 days after you elect to pay the first premium. That is time to apply for a private plan or choose a marketplace plan before committing. Ask the plan administrator how coverage is dated if you elect late in the window. One trap: ending COBRA early by choice does not open a marketplace window, so you would wait for Open Enrollment (November 1 to January 15).
Leaving a job, and healthy?
Send your ZIP code. A licensed agent prices COBRA against your marketplace plan and the private options for your county, before your 60 days run out.
Compare Before I Elect →Free · No obligation · Licensed in 23 states · NPN #22052447
More on the rules: COBRA explained · the COBRA election notice · job loss as a qualifying life event.
Common Questions
What is cheaper than COBRA?
Usually a marketplace plan with a tax credit, a spouse’s employer plan, or, for a healthy household above the subsidy line, a medically underwritten private plan. COBRA charges up to 102% of the full premium, about $10,000 a year for one person at 2026 averages.
Can I drop COBRA for a marketplace plan?
Yes during Open Enrollment, November 1 to January 15, for any reason. Outside it, ending COBRA by choice does not open a special enrollment period; you can switch when COBRA runs out or within 60 days of losing the job-based plan.
How long do I have to elect COBRA?
At least 60 days, from the later of the election notice and the date your coverage ends, plus at least 45 days after electing to pay the first premium.
Sources
- U.S. Department of Labor, An Employee’s Guide to Health Benefits Under COBRA: the 102% limit, the 60- and 45-day periods and the 18-month term.
- U.S. Department of Labor, Continuation of Health Coverage (COBRA).
- HealthCare.gov, COBRA coverage and the Marketplace.
- KFF, 2026 Employer Health Benefits Survey.
General information, not a quote or an offer of coverage. Medically underwritten coverage is not available in every state, and acceptance depends on health history. Daniel Griffin is a licensed independent insurance agent, NPN #22052447, not tied to any single carrier and not affiliated with the U.S. government.