You've got 60 days after your last day to decide. COBRA or the ACA marketplace. Most people don't know the actual numbers until they're staring at the enrollment screen, which is the worst possible time to figure this out.
Here's the math in advance, so you can make the call before you hand in your badge.
**This is not health insurance advice.**Coverage options vary by state, plan, and income. Use this as a framework, then verify your specific options athealthcare.govor your state's marketplace.
What COBRA actually costs
COBRA lets you stay on your employer's health plan after leaving. The catch: you pay the full premium — your portion plus what your employer was paying — plus a 2% administrative fee.
While you were employed, you probably saw $200–$400/month deducted from your paycheck. Your employer was quietly paying the other 70–83% of the actual premium.
According to theKFF 2024 Employer Health Benefits Survey, the average annual premium for employer-sponsored coverage was:
Single coverage:$8,951/year ($746/month)
Family coverage:$25,572/year ($2,131/month)
Add the 2% COBRA surcharge and those numbers become $761/month single and $2,174/month family. That's your COBRA bill.
**The shock:**If you were paying $180/month at work, COBRA could cost $760/month for the same plan. The difference was always there — your employer was just paying it silently.
COBRA lasts up to 18 months (36 months in some qualifying events). It covers the exact same plan, network, and deductibles you had as an employee. Your doctors don't change. Your in-network status doesn't change. It's the cleanest option if continuity matters — for ongoing care, upcoming procedures, or mid-deductible-year situations.How ACA marketplace pricing worksThe ACA marketplace (healthcare.gov or your state's exchange) uses income-based subsidies to reduce premiums. The subsidy is a tax credit applied directly to your monthly premium. You don't pay it upfront and wait for a refund — it reduces your bill in real time.Subsidy eligibility is based on your projected income for the year, measured as a percentage of the Federal Poverty Level (FPL). For 2026, the FPL for a single person is approximately $15,650.Single person income% of FPL****Max monthly premium (benchmark plan)$20,000128% FPL$0 (Medicaid-adjacent subsidies)$30,000192% FPL$85/month$40,000256% FPL$170/month$55,000352% FPL$310/month$75,000480% FPL$470/monthThese are approximate figures for the "benchmark" Silver plan. Plans range from Bronze (cheapest premium, highest out-of-pocket) to Platinum (highest premium, lowest out-of-pocket). Use thehealthcare.gov plan comparison toolto see your actual options by zip code.The income cliffs to knowSubsidy calculations are unforgiving at the edges. A few specific thresholds matter:**Under 138% FPL in expansion states ($21,000 single):**You qualify for Medicaid, not ACA subsidies. Medicaid is free or very low cost. Most states have expanded Medicaid; check yours atKFF's Medicaid expansion map.**138–400% FPL ($21,000–$62,600 single):**Generous subsidies. This is the heart of the ACA subsidy zone. The benchmark Silver plan can cost $0–$350/month depending on income.**Above 400% FPL ($62,600+ single):**You still get subsidies under enhanced ARP rules currently in effect through 2025. If those rules expire or aren't extended, premiums above 400% FPL jump sharply. Check healthcare.gov for current rules at enrollment time.**The key variable:**Your projected income for the entire calendar year. If you quit in July and earned $50,000 before quitting, that's your income for the year — even if you earn nothing afterward. Subsidies are based on annual projected income, not what you're earning now.The special enrollment period when you quitLosing employer-sponsored coverage is a qualifying life event. It triggers a 60-day Special Enrollment Period (SEP), during which you can enroll in an ACA marketplace plan outside of open enrollment. This is your window — don't miss it.The 60-day clock starts on the day you lose coverage (usually the last day of the month you leave, or your final day depending on employer policy). You can enroll any time during that window, and coverage usually starts the first of the following month.COBRA also has a 60-day enrollment window. Critically, COBRA can be elected retroactively — you don't have to decide upfront. If you're healthy and have no immediate care needs, you can wait, see if you need it, and elect COBRA retroactively within those 60 days. You'd pay back premiums for the gap period, but you wouldn't have paid for months you didn't use.The simultaneous 60-day windows for COBRA and ACA mean you don't have to decide instantly. But 60 days goes faster than it sounds.When COBRA winsCOBRA makes sense when:**You're mid-deductible year.**If you've hit $2,000 toward a $3,000 deductible, staying on COBRA preserves that progress. Starting a new ACA plan resets your deductible to zero.
**You have ongoing care.**Specialists, therapists, surgeons — if staying in-network matters, COBRA keeps your care uninterrupted. ACA plans have different networks. Your current doctors may not be covered.
**Your income is high.**If you're expecting $80,000+ in income for the year, ACA subsidies shrink. COBRA's flat rate may be competitive or even cheaper than an unsubsidized marketplace plan.
**The gap is short.**If you're starting a new job in 2–3 months and don't expect significant care, the COBRA retroactive election strategy can cover you at zero upfront cost.
When ACA marketplace winsThe ACA marketplace makes sense when:**Your income drops significantly.**If you're taking time off or freelancing at a lower income, subsidies can make ACA coverage dramatically cheaper than COBRA.
**You're starting fresh in the deductible year.**If it's January and your deductible hasn't been touched, there's no sunk cost to protect.
**Your employer's plan wasn't great.**Some employer plans are genuinely poor — high deductibles, narrow networks. The marketplace may offer better coverage at a similar or lower price with subsidies.
**You're young and healthy.**A Bronze or Silver plan with a higher deductible may be far cheaper than COBRA, and if you don't use it, you've saved significantly.
Short-term health plans: a warningYou'll see ads for "short-term health insurance" that costs $80–$150/month. These plans are real, and they're largely terrible.Short-term plans are not ACA-compliant. They can deny coverage for pre-existing conditions, exclude specific services, cap total benefits, and refuse to renew if you get sick. They're legal, regulated at the state level, and designed specifically to exclude high-cost scenarios.In a minor emergency, they work fine. In a major one — a cancer diagnosis, a surgery, a serious accident — they frequently leave you with massive out-of-pocket bills that COBRA or an ACA plan would have covered.Use them only as a true last resort and read the fine print on every exclusion.What to do right nowBefore you quit:Find out when your employer coverage ends. Usually the last day of the month you leave, but check your benefits documents.
Ask HR for the full premium cost of your current plan (employer + employee share). This is your COBRA baseline.
Run your numbers atKFF's subsidy calculatorusing your expected income for the full year. This gives you an ACA estimate before you enroll.
Check if your state has its own marketplace (14 states do) or uses healthcare.gov.
After you quit:Mark your 60-day SEP window on your calendar from the date coverage ends.
Compare the COBRA rate to marketplace options at healthcare.gov or your state exchange.
If you're healthy and your income is low enough for significant subsidies, the ACA marketplace is almost always the better financial choice.
If you're mid-care or mid-deductible, do the math on what it would cost to restart vs. stay.
**Bottom line:**COBRA average: $761/month single, $2,174/month family. ACA marketplace with subsidies at $40,000 income: ~$170/month single. The gap can be $500–$600/month — or $6,000–$7,200/year. That's real money on a career break budget.
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