Free COBRA calculator for 18-month coverage costs. Compare COBRA (102% premium) vs ACA Marketplace with subsidies. Calculate total costs for 6/12/18 months, 60-day election deadline, and find the cheapest health insurance after job loss.
Frequently Asked Questions
Why is COBRA coverage limited to 18 months?
18 months is the federal maximum for job loss or hour reduction under the Consolidated Omnibus Budget Reconciliation Act of 1985.
Congress set this limit as a "bridge" period—long enough to find new employment with benefits, but not intended as permanent coverage.
The 18-month clock starts from your qualifying event date (not election date).
Important exceptions: (1) Disability determination within first 60 days extends coverage to 29 months, (2) Divorce, death of employee, or Medicare eligibility extends dependent coverage to 36 months, (3) Some states have "mini-COBRA" laws with different durations (CA: 36 months, NY: 36 months, TX: 9 months).
After 18 months, you must transition to Marketplace, Medicare (if 65+), spouse's plan, or new employer coverage.
How much does COBRA actually cost per month?
COBRA costs 102% of the total premium (employee + employer portions) that your employer was paying before you lost coverage.
Example: If your employer paid $700/month and you paid $150/month, total premium was $850.
Under COBRA, you pay $867/month (102% of $850).
The 2% admin fee is federally mandated.
For family coverage averaging $1,800/month total, COBRA costs ~$1,836/month ($22,032/year)—often unaffordable without severance subsidy.
Is COBRA cheaper than Marketplace insurance?
COBRA is usually more expensive than ACA Marketplace plans, especially with Premium Tax Credits (subsidies).
Example: $867/month COBRA vs. $400/month Marketplace Silver plan with $350/month subsidy = net $50/month after subsidy.
COBRA may be cheaper only if: (1) Employer subsidizes COBRA in severance package, (2) You need continuity of care with current providers (no network change), or (3) High healthcare needs and COBRA coverage is superior.
Always compare on Healthcare.gov before deciding—input your estimated current year income (not prior year) to see real subsidy.
How long do I have to sign up for COBRA?
You have 60 days from the later of: (1) the date you lose coverage, or (2) the date you receive the COBRA election notice.
This is a hard deadline—miss it and you permanently forfeit COBRA rights, no exceptions.
Once elected, you have 45 days to make first payment (covering retroactive coverage from loss date).
Smart strategy: Enroll in Marketplace immediately, but keep COBRA election option open for 60 days—if a medical emergency happens, elect COBRA retroactively and cancel Marketplace.
If you stay healthy, let COBRA deadline pass.
Can I get subsidies on the Marketplace if I'm offered COBRA?
Yes, absolutely.
Being offered COBRA does NOT disqualify you from Marketplace Premium Tax Credits (subsidies).
COBRA is considered "unaffordable" under ACA rules if it exceeds 8.39% of household income (2025 threshold).
Example: $40,000 income = $280/month affordable limit.
If COBRA costs $850/month, you're eligible for full Marketplace subsidies because COBRA is 25.5% of income.
In fact, 95%+ of unemployed workers find COBRA unaffordable and qualify for subsidies.
Job loss triggers a "special enrollment period" for Marketplace (60 days from coverage loss).
What happens if I miss the COBRA deadline?
You permanently lose COBRA rights—no extensions, no exceptions.
If you miss the deadline: (1) Immediately enroll in Marketplace (special enrollment period lasts 60 days from coverage loss—different clock than COBRA), (2) Consider short-term health insurance (not ACA-compliant, but covers emergencies), and (3) Negotiate payment plans with providers if you incurred medical bills during the gap.
Prevention: Set 3 phone reminders—at 30 days, 50 days, and 58 days from the date you receive COBRA notice.
Does COBRA coverage start immediately when I elect it?
COBRA coverage is retroactive to your loss date if you elect within the 60-day window and pay within 45 days of election.
Example: Lose coverage Jan 1, elect COBRA on Feb 15, pay March 1—coverage is retroactive to Jan 1 and any medical expenses incurred Jan 1-March 1 are covered.
This creates the "COBRA arbitrage" strategy: Wait 60 days before electing.
If you stay healthy, let deadline pass and save $3,000-9,000.
If a medical emergency occurs, elect COBRA retroactively.
However, if you don't elect by day 60, there is NO retroactive coverage—you're uninsured from day 1.
About This Page
Editorial & Updates
- Author: SuperCalc Editorial Team
- Reviewed: SuperCalc Editors (clarity & accuracy)
- Last updated: 2026-01-13
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Financial/Tax Disclaimer
This tool does not provide financial, investment, or tax advice. Calculations are estimates and may not reflect your specific situation. Consider consulting a licensed professional before making decisions.