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COBRA vs Marketplace Insurance: What to Do When You Leave a Job
Help comparing COBRA with a Marketplace plan after you leave a job. Call or text 813-302-7151.
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When a job ends, most people in Florida have two main ways to keep health insurance: COBRA, which keeps your old work plan, or a Marketplace plan from HealthCare.gov. Both work, but the cost, the length and the deadlines are very different. Compare them before either window closes. If someone in the family is in the middle of treatment, keeping the same doctors may matter more than the monthly price.
What happens to health coverage when you leave a job
Ask HR for the exact date your coverage ends, in writing. It is often the end of the month, not your last workday. Ask for the COBRA election notice, the full monthly premium and whether the employer will pay any part of it for a while. If you are married, ask whether your spouse’s job offers a plan you can join. Keep every notice: the dates on them decide your deadlines.
How COBRA continuation coverage works
Federal COBRA lets you stay on your employer’s group plan for a limited time. It applies to private employers with 20 or more employees, and to state and local governments. You keep the same plan, doctors and deductible progress, but you usually pay the whole premium yourself.
- How long: 18 months after a job loss (other than for gross misconduct) or a cut in hours. It can stretch to 29 months if Social Security finds that someone on the plan was disabled within the first 60 days of COBRA. A spouse or child can get up to 36 months after a divorce or legal separation, the employee’s death, the employee going on Medicare, or a child aging off the plan.
- Cost: up to 102% of the plan’s full cost (the full premium plus 2%). During the disability extension, the plan can charge up to 150%.
- Deadline to choose: 60 days from the day your coverage ends or the day you get the election notice, whichever is later. After you elect, you have 45 days to make the first payment.
If you elect on time and pay, COBRA covers you back to the day your old coverage ended. The details are in the U.S. Department of Labor COBRA FAQs. If your employer had fewer than 20 employees, federal COBRA may not apply. Florida has its own continuation law for small employers whose plan comes from an insurance company (Florida Statutes s. 627.6692). The rules are different. You must tell the insurance company in writing within 63 days after the job loss or other event. The insurer then mails you a form, and you have 30 days to send it back with your first payment. Coverage lasts up to 18 months, or 29 months with a disability. It can cost up to 115% of the premium, or 150% during a disability extension. Call us and we will help you check what your plan offers.
How Marketplace coverage works after losing employer insurance
Losing job-based coverage opens a Special Enrollment Period on the Marketplace, even if your employer offers COBRA. You usually have 60 days before or 60 days after the loss to pick a plan. Savings depend on your expected household income for the year. A Marketplace plan will have its own network, drug list and deductible, so check your doctors and medicines before you choose. Line up the new plan’s start date with the day your old coverage ends.
COBRA vs Marketplace side by side
| COBRA | Marketplace plan | |
|---|---|---|
| How long it lasts | 18 months after job loss or fewer hours; 29 months with a disability extension; up to 36 months for a spouse or child after divorce, death or Medicare | As long as you stay eligible and keep paying; you renew each year |
| Cost | Up to 102% of the full plan cost (up to 150% during the disability extension) | The plan premium, minus any premium tax credit your household income qualifies for |
| Deadline to choose | 60 days from coverage ending or the election notice, whichever is later; first payment within 45 days after you elect | 60 days before or 60 days after you lose job-based coverage |
| Marketplace Special Enrollment window | When COBRA runs out, you have 60 days to enroll in a Marketplace plan. Dropping COBRA early or stopping payment does not count. | Losing job coverage: 60 days before or after the loss |
Source for the Marketplace windows: HealthCare.gov: COBRA coverage and the Marketplace.
Compare premiums, deductibles, networks and prescriptions
COBRA keeps what you already paid toward this year’s deductible and out-of-pocket maximum. A new Marketplace plan usually starts both at zero. Add up the premiums and the care you expect for the rest of the year, not just one month. If your employer is paying part of COBRA for a few months, count the months after that help ends too. Then check your prescriptions and any planned surgery or treatment under each option.
When a Special Enrollment Period may apply
The Marketplace window runs on its own clock, separate from the COBRA election and payment deadlines. If you apply before your job coverage ends, the new plan can start right after it, with no gap. Keep in mind that sending an application, electing COBRA and having active, paid coverage are three different steps. Make sure you finish the one you choose, including any documents the Marketplace asks for and the first premium.
What happens if you elect COBRA and later want Marketplace coverage
You can switch during Open Enrollment for any reason. Open Enrollment for 2027 coverage starts November 1, 2026, and you must enroll by December 15 for coverage that starts January 1; check HealthCare.gov for the final end date. Outside Open Enrollment, you need a qualifying event. When your COBRA runs out, you have 60 days to enroll. Dropping COBRA early or stopping your payments does not open a new window, so talk to us before you cancel.
What to have ready before comparing the two
Bring the COBRA notice, the monthly COBRA premium, any dates when employer help ends, how much of your deductible you have met, your doctors and your medication list. We review the Marketplace plans available in your county and their start dates. The COBRA administrator handles the election and the COBRA payments. Keep written confirmation from both sides.
Official resources: U.S. Department of Labor: COBRA overview; HealthCare.gov: Special Enrollment Periods.
Frequently Asked Questions
Does a COBRA offer stop me from getting Marketplace help?
No. Being offered COBRA does not by itself stop you from getting Marketplace savings. What matters is your household income and whether you actually enroll in other coverage, so compare both before you elect COBRA.
How long does COBRA last?
Usually 18 months after a job loss or a cut in hours. It can reach 29 months with a disability extension, and up to 36 months for a spouse or child after a divorce, death, Medicare enrollment or a child aging off the plan.
How much does COBRA cost?
Up to 102% of the plan’s full cost, which is the whole premium plus 2%. During a disability extension it can be up to 150%. Your notice lists the exact amount.
Can I drop COBRA whenever I want and switch?
Only during Open Enrollment, unless you have another qualifying event. Dropping COBRA early or stopping payment does not open a Special Enrollment Period. When COBRA runs out on its own, you get 60 days to enroll.
Are the two enrollment deadlines the same?
No. You have 60 days to elect COBRA, counted from the later of your coverage end date or the notice date, then 45 days to pay. The Marketplace window is 60 days before or 60 days after you lose job coverage.
Will my deductible transfer?
Usually not. COBRA keeps your current deductible progress because it is the same plan, but a new Marketplace plan normally starts at zero. Ask the new insurer if you are unsure.
Which option protects ongoing treatment better?
COBRA usually does, because you keep the same plan, doctors and approvals. The trade-off is cost, so compare the total for the rest of the year and check whether your specialists and hospital are in the Marketplace plan’s network.
What if my employer has fewer than 20 employees?
Federal COBRA may not apply. If your plan comes from an insurance company, Florida law may let you keep it for up to 18 months, at up to 115% of the premium. You must tell the insurer in writing within 63 days, so do not wait. Call us at 813-302-7151 and we will help you check what your plan offers.
This guide is general information, not legal, tax or medical advice. Your plan documents, including the Summary of Benefits and Coverage, control what is covered and what you pay.
About the Author
Raymundo Guzman
I am Raymundo Guzman, a licensed independent insurance agent and the owner of Covered by Guzman. On the health side, I help Florida individuals, families and small businesses compare ACA Marketplace plans, Medicare Advantage and Part D, and dental and vision coverage, checking doctors and medications before anything is submitted. I work in English and Spanish, and a member of our team speaks Arabic. We usually meet by phone or video, and I stay available after enrollment.
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