Is it better to get COBRA or Obamacare?
Asked by: Tremaine Shanahan | Last update: December 31, 2025Score: 4.5/5 (10 votes)
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 have COBRA and Obamacare at the same time?
During Marketplace Open Enrollment, you can sign up for a Marketplace plan even if you already have COBRA. You will have to drop your COBRA coverage effective on the date your new Marketplace plan coverage begins.
Why is COBRA more expensive than marketplace?
Employer PPO plans frequently have broader nationwide networks than Marketplace plans which explains why your COBRA is more expensive than marketplace. That usually explains the price difference. You have access to a larger network. It also depends what your employer chooses to offer.
How much does COBRA typically cost per month?
COBRA coverage is not cheap.
A COBRA premium can cost on average $400 to $700 a month per person.
Should I Do COBRA or ACA?
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.
Is COBRA coverage worth it?
“If you're close to meeting your deductible on your current insurance plan and you have high health care costs, it may be worth it to temporarily stay on your COBRA plan,” explains Donovan. The same holds true if you're far into your employer plan's year and have already met your deductible.
Who is not eligible for COBRA?
Why would an employee not qualify to enroll in Cal-COBRA? The employee is enrolled in or eligible for Medicare. The employee does not enroll within 60 days of receiving the notice of eligibility from the employer. The employee is covered by another health plan.
Does Obamacare cover surgery?
All plans offered in the Marketplace cover these 10 essential health benefits: Ambulatory patient services (outpatient care you get without being admitted to a hospital) Emergency services. Hospitalization (like surgery and overnight stays)
What happens if your income decreases with Obamacare?
If income drops during the year
You may qualify for a more subsidy or even qualify for any subsidy if you were right on the income 400% level. It's best to keep this information as current and accurate as possible to protect yourself.
What is the largest disadvantage of COBRA?
Limited coverage duration:
One of the significant drawbacks of COBRA is its limited coverage duration. Typically, COBRA allows individuals to retain their employer-provided health insurance for up to 18 months after leaving their job or experiencing a qualifying event.
Does COBRA affect your taxes?
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.
What percentage of people take COBRA?
Roughly 15 percent of UI beneficiaries received health insurance coverage via COBRA. Taking into account the main eligibility requirements for the ARRA subsidy, we estimate that between a quarter and a third of eligible unemployed workers enrolled in subsidized COBRA for continuing health insurance.
What is the best HealthCare insurance?
Investopedia's analysis ranks Kaiser Permanente as the best health insurance company for 2025 because of its blend of affordability and low customer complaints. UnitedHealthcare and Aetna also earned top marks. We evaluated nine insurers using dozens of criteria, such as customer satisfaction, plan types, and costs.
What is the average deductible for Obamacare?
KFF also reported the average 2024 deductible for marketplace plans sold via HealthCare.gov, (combined for medical and prescription drugs) by metal rating: $7,258 for Bronze plans, $5,241 for Silver plans, $1,430 for Gold plans, and $97 for Platinum plans.
Are there better options than COBRA?
Instead of enrolling in COBRA continuation coverage, there may be other more affordable coverage options for you and your family through the Health Insurance Marketplace, Medicaid, or other group health plan coverage (such as a spouse's plan) through what is called a “special enrollment period.” Some of these options ...
What is the 60 day COBRA loophole?
You have 60 days to enroll in COBRA once your employer-sponsored benefits end. Even if your enrollment is delayed, you will be covered by COBRA starting the day your prior coverage ended.
How much should I expect to pay for COBRA?
Based on plan and state, COBRA costs range from about $400 to $700 per month and are based on the following: Your previous monthly insurance contribution. Your recent employer's monthly insurance contribution.
Is Obamacare cheaper than COBRA?
COBRA costs an average of $599 per month. An Obamacare plan of similar quality costs $462 per month—but with the government subsidies available, the average cost of an Obamacare plan on HealthSherpa is less than $10 per month.
What can I do instead of COBRA?
- You can enroll in a Marketplace plan within 60 days of losing your job-based coverage.
- Find Marketplace plans and prices to compare them to your COBRA coverage or offer.
- If eligible for Medicaid or CHIP, you can enroll in those programs any time and coverage can start immediately.
What is stronger than COBRA?
The anaconda is much larger and stronger, using its powerful body to wrap around and crush its prey. While the cobra's venom is deadly, it would take time to affect the anaconda, and the snake could still overpower the cobra before the venom kicks in.