You just left a job, by choice or not, and your employer coverage is ending. You generally have 60 days to decide what to do about health insurance, and two main options are in front of you: COBRA and an ACA Marketplace plan. Many people default to COBRA because it feels familiar: same doctors, same plan. But COBRA is often expensive, and for many people who lose a job, especially if income drops, a Marketplace plan with a subsidy can cost much less. It depends on your situation, so compare both.
What Is COBRA?
COBRA lets you continue your employer’s group health plan for up to 18 months after leaving a job — but now you pay the FULL premium. That means you pay both your old share AND what your employer was paying on your behalf, plus a 2% administrative fee.
Average Texas COBRA premiums:
Because you pay the whole premium yourself, COBRA can cost several times what you paid as an employee. Your COBRA election notice shows the exact monthly cost for your plan.
What Is an ACA Marketplace Plan?
The ACA Marketplace offers private health plans with income-based tax credits that can lower your premium, sometimes a lot, and for some people to $0. Losing job-based coverage usually qualifies you for a Special Enrollment Period: generally 60 days to enroll outside open enrollment. Coverage usually starts the first of the month after you pick a plan.
COBRA vs ACA: Head-to-Head Comparison
When COBRA Is the Better Choice
- You are partway through your deductible. Switching plans usually restarts your deductible. If you expect surgery or a birth this year, COBRA keeps that progress.
- You are in the middle of treatment with a doctor who is not in any Marketplace network.
- You expect new employer coverage soon and want no change in between.
- You do not qualify for a subsidy and the Marketplace plans with your doctors cost about the same as COBRA.
When ACA Is the Better Choice (Most Texans)
- You qualify for a subsidy. If your income drops after leaving a job, your Marketplace tax credit may go up.
- You want coverage beyond 18 months. Marketplace plans renew yearly; COBRA usually ends after 18 months.
- You are going self-employed. Self-employed people may be able to deduct health premiums; ask your tax advisor.
- You want to choose your own plan, network and deductible.
The 60-Day Rule: Do Not Miss It
Whichever you choose, watch the deadlines. You generally have 60 days to elect COBRA (counted from your loss of coverage or your COBRA notice, whichever is later), and 60 days from losing coverage to pick a Marketplace plan. Miss them and you may have to wait for the next Open Enrollment (starting November 1) unless you have another qualifying event.
The Side-by-Side Calculation: Do This Before You Decide
- Find out exactly what COBRA would cost (it is on your COBRA election notice).
- Check your Marketplace options and subsidy at HealthSherpa.
- Compare the total yearly cost of each: premiums plus expected deductibles and copays.
- Check that your key doctors and prescriptions are covered.
Get the Comparison Done in 15 Minutes — Free
At Brilliant Insurance, David Gustafson runs this COBRA vs. ACA comparison for Texans every week. He will pull your real subsidy amount, show you side-by-side plan options, and tell you exactly what each option costs — factoring in your specific doctors and prescriptions. It costs you nothing and takes 15 minutes.
Book a Free COBRA vs ACA Consultation: Schedule Now | Call: (972) 750-3031 | TX License #2116912 | Brilliant Insurance, Plano TX
Talk to a licensed agent
Brilliant Insurance is an independent agency in Plano, Texas. David Gustafson is a licensed agent (Texas License #2116912, NPN 18037219) and can compare options from many carriers for you, at no cost to you.
Book a free 30-minute call or call (972) 750-3031.
This article is general information, not advice for your situation. Plans, prices and availability vary by carrier, age, health and location. Coverage is subject to the policy’s terms, limitations and exclusions.
