What is cheaper, COBRA or Obamacare?
Asked by: Ladarius Roberts | Last update: November 1, 2025Score: 4.9/5 (46 votes)
Is it better to take COBRA or Obamacare?
COBRA will be better insurance but will be more expensive. It's also only available for a limited time frame. Another positive is that it is effective the day your old insurance would have terminated.
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.
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.
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.
Should I Do COBRA or ACA?
How much does COBRA cost a month?
The average monthly cost of COBRA Insurance premiums ranges from $400 to $700 per individual.
What are disadvantages of Cobra insurance?
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.
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 ...
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.
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 do I do if 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.
Are COBRA payments eligible for tax credit?
According to the Federal tax laws, your unreimbursed COBRA payments are, in fact, deductible as medical expenses on your 1040 tax return in the same way that you can deduct unreimbursed payments for legal medical services provided by physicians, surgeons, dentists, and other medical practitioners, as well as any ...
Can you drop COBRA and get Obamacare?
You can only drop COBRA and sign up for a Marketplace plan and premium tax credits during Open Enrollment. You will have to drop your COBRA coverage effective on the date your new Marketplace plan coverage begins.
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. But ultimately, it depends on your situation.
How much does COBRA typically cost per month?
You should expect COBRA insurance costs to be substantially higher than what you paid as an employee because your employer is no longer required to pay a share. In 2023, employees paid an average of $145 per month for an individual plan and $548 per month for a family plan, according to KFF.
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 there a better alternative to COBRA?
If you can't afford COBRA continuation coverage, the ACA (Affordable Care Act), also known as Obamacare, is the best and most affordable option. Employees who lost their jobs can enroll in an Obamacare plan via the Marketplace during the open enrollment period that runs from November 1st through December 15th.
Why is COBRA so expensive?
Loss of Employer Subsidy: When you were employed, your employer likely subsidized a significant portion of your health insurance premium. However, with COBRA, the employer is no longer required to contribute to the premium, leaving you responsible for the full cost of the insurance, plus added administrative fees.
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.
How do I find out how much my COBRA will cost?
Two Ways To Determine Your Cost
Determining your COBRA insurance cost can be done in two ways: using our COBRA Premium Cost Calculator or referencing your W-2 form. Both methods give an accurate estimate of your monthly premium, including any potential administrative fees.
What is not covered under COBRA?
COBRA also does not cover plans that provide only life insurance or disability benefits, as those benefits are not considered “medical care.”
Does COBRA coverage begin immediately?
Assuming one pays all required premiums, COBRA coverage starts on the date of the qualifying event, and the length of the period of COBRA coverage will depend on the type of qualifying event which caused the qualified beneficiary to lose group health plan coverage.