Is there cheaper insurance than COBRA?
Asked by: Daniella Glover MD | Last update: August 8, 2025Score: 4.2/5 (34 votes)
Is there a cheaper alternative to COBRA?
Not only are Marketplace health insurance plans typically less expensive than COBRA, most Marketplace applicants (91% in 2022) qualify for at least some government subsidy to help pay their premiums. The amount of the subsidy depends on your income, where you live and the size of your family.
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.
Is it better to go with COBRA or marketplace?
Cobra for us was substantially cheaper. $2K/month with vision and dental versus $2500/month for marketplace before dental and vision. If you can get a subsidy (and you think future administration will let it stick), then go for ACA.
Does COBRA cost more than regular insurance?
COBRA insurance is often more expensive than marketplace insurance, partly because there isn't any financial assistance from the government available to help you pay those COBRA premiums.
COBRA Insurance | What You Need to Know
Is COBRA even worth it?
While it may seem like a lot of money, COBRA may actually cost you less than what you'll pay on the open market. That's because you may still get your former company's group discount. You can also use a health savings account (HSA) to pay for your COBRA premiums. They're considered a qualified medical expense.
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.
How can I reduce my COBRA cost?
To reduce your COBRA insurance cost per month, one option is to see whether your employer offers other lower-cost plan options with a lower coverage level. This tradeoff could make sense if you're healthy. You can't switch plans immediately after losing your job.
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.
What if I can't afford 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 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.
Who pays for COBRA after termination?
COBRA and Cal-COBRA
COBRA allows former employees, retirees, and their dependents to temporarily keep their health coverage. If you get COBRA, you must pay for the entire premium, including any portion that your employer may have paid in the past.
Can I negotiate COBRA premiums?
Your employer may subsidize COBRA, either pursuant to a company-wide plan or an individual severance agreement that you negotiate.
What happens if I don't want cobra insurance?
After Open Enrollment ends, however, if you voluntarily drop your COBRA coverage or stop paying premiums, you generally will not be eligible for a special enrollment opportunity and will have to wait until the next Open Enrollment period.
Can I deduct COBRA premiums if unemployed?
Yes they are tax deductible as a medical expense.
What to do if a COBRA is too expensive?
If COBRA feels expensive, consider ACA plans or short-term health insurance. Marketplace plans during the open enrollment period or a special enrollment period can offer more budget-friendly options.
Why are COBRA plans 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.
How do I waive COBRA coverage?
If you are currently receiving COBRA coverage for which a premium is being paid and you wish to waive future coverage, you can simply refrain from paying the COBRA premium for that coverage period.
Is COBRA worth the money?
But ultimately, it depends on your situation. If you're not eligible for government subsidies and the costs of COBRA and ACA are similar, or if you've used up the deductible on your employer insurance before you leave your job, it might make sense for you to do a COBRA plan.
How much does COBRA typically cost per month?
The average monthly cost of COBRA Insurance premiums ranges from $400 to $700 per individual.
Is COBRA cheaper than Obamacare?
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 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.
How to get $10 insurance?
Most people shopping for health insurance on the Affordable Care Act Marketplace are eligible for a tax credit that reduces how much they pay in premiums. Enhanced subsidies have brought premiums down to $10 a month—or less—for 75% of enrollees.
Who actually pays for Obamacare?
The federal government covers 90% of the cost of Medicaid expansion. Individual Mandate: The ACA also originally included an “individual mandate” or requirement for most people to maintain health insurance.