Can I cancel COBRA and get Obamacare?
Asked by: Dr. Elenora Gislason Sr. | Last update: October 25, 2025Score: 4.2/5 (67 votes)
Can I switch from COBRA to Obamacare?
From January 16-October 31: You can switch from COBRA to a Marketplace plan if: Your COBRA coverage is running out. You have to pay the full cost of COBRA coverage because your former employer stops contributing, or you lose a government subsidy (like COBRA premium assistance).
Can I cancel COBRA and enroll in marketplace?
After Marketplace Open Enrollment ends, however, if you voluntarily drop your COBRA coverage or stop paying premiums, you will not be eligible for a special enrollment opportunity to enroll in a Marketplace plan and will have to wait until the next Marketplace Open Enrollment period.
Can I cancel my employer health insurance and get Obamacare?
Yes, you can opt out of your employer based health insurance and choose to be covered by a Marketplace plan instead. (The clarification between Obamacare referencing the laws and ideas is understood in common society so there's no need to waste any time explaining the glossary of terms.)
What happens if you cancel COBRA?
Keep in mind if you choose to terminate your COBRA continuation coverage early with no special enrollment opportunity at that time, you generally will have to wait to enroll in other coverage until the next open enrollment period for the new group health plan or the Marketplace.
How To Cancel COBRA Insurance | cancel cobra insurance plan
What is the COBRA loophole?
If you decide to enroll in COBRA health insurance, your coverage will be retroactive, meaning it will apply to any medical bills incurred during the 60-day decision period. This loophole can save you money by avoiding premium payments unless you actually need care during this time.
Is canceling COBRA a qualifying event?
No, stopping payment for COBRA coverage is not considered a qualifying event.
Who is not eligible for Obamacare?
Must live in the United States. Must be a U.S. citizen or national (or be lawfully present). Learn about eligible immigration statuses. Cannot be incarcerated in prison or jail.
Can I get Obamacare instead of employer insurance?
Answer: Legally speaking, you certainly can decide to purchase insurance through the online Healthcare Marketplace or health insurance exchange rather than choosing your employer's plan. Obamacare is available to everyone, whether or not their employers offer insurance.
Why is COBRA so expensive?
COBRA coverage is not cheap.
Why? Because you're now responsible for paying your portion of your health insurance: The cost your employer contributed to your premium, in addition to the 2% service fee on the cost of your insurance.
Is Cobra insurance cheaper than Marketplace?
Both COBRA and ACA Marketplace plans have their advantages. COBRA lets you keep your exact employer-based plan but is often more expensive. ACA plans may be more affordable, especially with subsidies, but require choosing a new plan. The best choice depends on your financial situation and healthcare needs.
What to do when a COBRA is too expensive?
If you decide COBRA is too expensive, consider a Marketplace health insurance plan for your coverage needs.
How does COBRA affect taxes?
Are my COBRA premiums deductible? Yes they are tax deductible as a medical expense. There isn't necessarily a “COBRA Tax Deduction”. You can only deduct the amount of COBRA medical expenses on your federal income tax in excess of 7.5% of your Adjusted Gross Income and then only if you itemize deductions.
Is there a better option than COBRA?
Alternatives to COBRA may offer more affordable or appropriate coverage. These include the health insurance marketplace, short-term insurance, Medicaid, or a new employer's plan. Review your options and assess your needs before making a decision.
Can you be turned down for Obamacare?
No insurance plan can reject you, charge you more, or refuse to pay for essential health benefits for any condition you had before your coverage started. Once you're enrolled, the plan can't deny you coverage or raise your rates based only on your health.
Can I use Obamacare instead of Cobra?
If you choose to enroll in COBRA, you can switch to ACA health insurance under the following circumstances: You have used up all of your COBRA coverage. You have another qualifying life event that makes you eligible for another Special Enrollment Period. It is the annual Open Enrollment Period.
Can I go on Obamacare if I quit my job?
Can I shop for coverage and subsidies on the Marketplace instead? Yes, leaving your job and losing eligibility for job-based health coverage will trigger a special enrollment opportunity for Marketplace coverage that lasts for 60 days.
Who is exempt from Obamacare?
If you're seeking an exemption because you can't afford coverage, you're a member of a federally recognized tribe, you're incarcerated, or you participate in a recognized health care sharing ministry, you have two options: The exemptions can be claimed when you complete your federal tax return.
Can you unenroll from COBRA at any time?
You may voluntarily terminate your coverage prior to the last day of COBRA for any reason. There are three ways to do so: Terminate coverage on your online account. For instructions, see How to terminate coverage in your COBRA online account.
What are the disadvantages of COBRA coverage?
- COBRA can be expensive, especially compared to the premiums you were paying before your qualifying event. ...
- COBRA does not apply to all employer-sponsored health plans—in particular, those organizations with fewer than 20 employees may have no requirements. ...
- Even if you get an extension, COBRA is only temporary.
Can I decline COBRA?
You must decide to accept or reject COBRA coverage during a certain time period (usually 60 days after your employer notifies you). You must pay your monthly premiums or you can lose your coverage. Once you have used up all your COBRA benefits, you may be able to get an extension of coverage under Cal-COBRA.