You Left Your Job — How Do You Keep Health Coverage?
While you're employed, your company usually covers a large share of your health insurance premium — often 70% or more. The moment you leave that job, you lose that subsidy, and you face a choice: pay to continue your exact same plan through COBRA, or shop for a new plan on the ACA marketplace. COBRA keeps your same doctors and coverage, but you now pay the full premium plus up to a 2% administrative fee, which can easily double or triple what you paid as an employee. An ACA marketplace plan may cost less, especially if you qualify for a premium tax credit, but the network and benefits could differ from your old plan.
How It's Calculated
| Item | Detail |
|---|---|
| COBRA monthly cost | Full premium (employer + employee share) × 1.02 |
| Increase vs. before | COBRA monthly cost − what you paid as an employee |
| Total cost comparison | Monthly premium × months of coverage needed |
| Coverage window | COBRA generally available for up to 18 months |
COBRA is worth it mainly if you're mid-treatment and don't want to switch doctors, or if your out-of-pocket costs so far this year would reset under a new plan's deductible. Otherwise, checking your ACA marketplace options is worth it — subsidy eligibility depends on your expected annual income, and many people who lost employer coverage qualify for a meaningful premium tax credit. This tool gives a simplified monthly comparison; check healthcare.gov for your actual subsidized rate.
Frequently Asked Questions
Your employer covered most of the premium before. On COBRA you pay the full amount plus up to a 2% fee, so the jump can be dramatic.
Typically up to 18 months after leaving a job, longer in some qualifying cases. You can switch to an ACA marketplace plan at any time.
※ Simplified estimate; actual ACA marketplace premiums depend on your income, age, and subsidy eligibility.