COBRA vs. ACA Marketplace: Which Is Cheaper in 2026?
An interactive calculator to help you decide.
Compare Your Options
Your Estimated Monthly Costs
COBRA
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ACA Marketplace (with subsidy)
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Common Scenarios
Scenario 1: The Freelancer
A single individual, age 30, with an income of $45,000. Their COBRA premium is $700/month. With an income at ~287% of FPL, their estimated ACA premium would be around $373/month, saving them over $300 monthly.
Scenario 2: The Family of Four
A family of four with a household income of $80,000. Their COBRA premium for a family plan is $1,800/month. Their income is at 249% of FPL. The ACA marketplace can offer a subsidized plan for around $562/month, a massive saving.
Scenario 3: The High-Income Earner
A couple, age 55, with an income of $150,000. Their COBRA premium is $1,500/month. Their income is over 400% FPL, so they receive no ACA subsidy. Unsubsidized ACA plans for their age could be more expensive than their COBRA plan. In this case, COBRA might be the better short-term option.
Frequently Asked Questions
Is COBRA cheaper than the ACA Marketplace?
It depends on your income. If your household income is below 400% of the Federal Poverty Level (FPL), you will likely find a cheaper plan on the ACA Marketplace due to subsidies. If your income is higher, COBRA might be comparable or cheaper, especially if your former employer subsidized a large portion of the premium.
Can I switch from COBRA to an ACA plan?
Yes, you can switch from COBRA to an ACA plan during the annual Open Enrollment Period. You may also qualify for a Special Enrollment Period if your COBRA subsidy ends.
How long does COBRA coverage last?
COBRA coverage typically lasts for 18 months, but can extend up to 36 months in certain circumstances, such as disability.