COBRA Continues a Plan—It Does Not Set a Fair Price
Healthcare.gov and the Department of Labor describe COBRA as continuation of a group plan after a qualifying event—not a discounted public option. You often pay the share your employer used to cover, plus a small admin add-on. That is why COBRA vs marketplace is a price-and-timing comparison, not a loyalty test. Marketplace plans may qualify for a premium tax credit if your estimated household income fits IRS rules; COBRA generally does not get that credit.
Convert the last paycheck and any severance into monthly net with the Salary Calculator before you sign an election. A premium that fit when the employer paid 70% can break gross vs net once you are covering both sides. If an HSA is still open, keep it sequenced behind cash as in HSA vs emergency fund—premiums are not qualified medical spending just because they feel medical.
- Same doctors: COBRA is stronger when a specialist or infusion cannot wait for a new network.
- Same month cash: Marketplace (or a new employer plan) wins when the COBRA invoice is larger than your liquid moat.
- Same calendar: Time the end of COBRA to the start of the next plan so you do not double-pay or go bare.
A Philadelphia Gap Month You Can Recalculate
Jordan in Philadelphia leaves a job on the 12th. Group coverage ends the last day of the month. Employer-era employee premium was $186; the COBRA invoice is $890 because the company subsidy vanished. A marketplace silver quote at Jordan’s expected 2026 income is $418 after an illustrative credit, with a higher deductible. The $472 gap is not “free doctors”—it is the price of keeping the old card in the wallet.
If a $2,200 infusion is already scheduled in-network, paying COBRA for four weeks can be cheaper than restarting prior authorization. If the next job’s benefits start on the 1st and nobody is in treatment, the marketplace plan (or a short uninsured window you can actually fund for emergencies) may win. Put the surviving premium into the Budget Planner on unemployment or severance net—not last year’s salary. Pair with paycheck-to-paycheck exits so the invoice does not land on a 24% card.
Elect on a Calendar, Not a Panic Email
COBRA election windows are documented on your notice—missing them can close the familiar plan even if you later hate the marketplace quote. Special enrollment for job loss is also time-boxed on Healthcare.gov. Write both deadlines next to the new employer’s benefits effective date. Automate the winning premium like a bill via paycheck automation the week coverage starts.
Do not treat a HealthCare.gov credit as a guaranteed refund—income you underestimate can create a tax-time bill. If high-APR debt is already open, compare extra premium vs avalanche in snowball vs avalanche before you buy the “safe” COBRA you cannot fund. More calculators live on the money hub.