COBRA decision tool · Updated for 2026
Laid off? You have ~60 days to decide on COBRA — and you can often wait.
See your exact election deadline, and whether waiting and electing only if you need it — or the ACA marketplace — beats paying for COBRA now. Calm, private, and honest about the catches.
Your COBRA deadline & decision
Enter what you know — results update as you type. Most people only need the first two fields.
We'll show your election deadline, the three paths side by side, and an honest read on whether waiting beats paying now.
Your deadline clock
Three paths, compared
Monthly cost and your total exposure on each. The highlighted card is the one that tends to fit your inputs — not advice.
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Marketplace figures are estimates from 2026 subsidy math (enhanced premium credits lapsed Jan 1, 2026), not live plan quotes. COBRA day-counts use federal 60/45-day rules as a guide. Your actual deadlines, premium, and subsidy can differ — verify on your election notice and at HealthCare.gov or your state exchange.
How it works
The COBRA timeline, the retroactive gamble, and the marketplace trap
COBRA lets you keep your former employer's exact health plan after a job loss — same doctors, same network — by paying the full premium yourself. The decision is really about timing, and three rules do most of the work.
1. You have about 60 days to elect — and 45 more to pay
Your election window runs ~60 days from the later of the date your coverage ends or the date your plan provides the COBRA election notice. After you elect, the first premium is generally due about 45 days later. Until you both elect and pay, you aren't active — but you also aren't locked out.
| Deadline | Typical window | Counts from |
|---|---|---|
| Elect COBRA | ~60 days | Later of coverage loss or election notice |
| First premium | ~45 days | The date you elect |
| Marketplace SEP | 60 days | Date job-based coverage is lost |
| Max COBRA duration | 18 months | Qualifying event (29/36 in some cases) |
Day-counts shown as a guide and rounded to the common federal rules. Verify against your plan's notice and current DOL guidance.
2. COBRA is retroactive — which is why you can wait
If you elect any time inside the window, coverage snaps back to the day your old plan ended, with no gap. That single fact is what makes the wait-and-see play possible: a healthy person can decline to pay, keep the cash, and elect only if something happens.
3. Picking COBRA can quietly forfeit a cheaper marketplace plan
Losing job-based coverage involuntarily opens a 60-day Special Enrollment Period (SEP) on the ACA marketplace. The trap: once you're on COBRA, voluntarily dropping it mid-term does not open a new SEP — you'd wait until open enrollment. Only exhausting the full COBRA term (or another qualifying event) reopens one.
In 2026 this matters more than usual: the enhanced ACA subsidies lapsed January 1, 2026, so marketplace plans are pricier than they were 2021–2025 — but for many incomes a subsidized silver plan still undercuts an unsubsidized COBRA premium. If the marketplace is your long-run plan, switch during the SEP, before committing to COBRA.
Smaller employer? That's "mini-COBRA"
Federal COBRA applies to employers with 20+ employees. Below that, continuation runs under your state's mini-COBRA law, and the durations and deadlines vary by state. This tool uses the federal counts as a guide and flags when state rules likely apply — always confirm on your continuation notice.
FAQ
Common COBRA questions
How long do I have to elect COBRA?
Generally 60 days, counted from the later of the date your job-based coverage ends or the date your COBRA election notice is provided. After you elect, you usually have another ~45 days to make the first premium payment.
These are the common federal rules — the exact dates are printed on your own election notice, so confirm there.
Is COBRA retroactive?
Yes. If you elect within the election window, coverage is reinstated retroactively to the day your prior coverage ended — no gap — but you must pay all back-premiums from that date. That retroactivity is exactly what makes the wait-and-see strategy possible.
Should I wait to elect COBRA?
It can make sense if you're healthy and can absorb the downsides. Because COBRA is retroactive, you can decline to pay during the window and elect only if a medical need arises — keeping the premiums if nothing happens.
The catches are real: you'd owe every back-premium at once on electing, providers may want cash during the gap, carriers cap how far back they reprocess claims, and the option vanishes the moment the election window closes. If you have ongoing care or prescriptions, electing up front is the safer call.
Can I switch from COBRA to the marketplace?
Losing job-based coverage opens a 60-day marketplace SEP. But once you're on COBRA, voluntarily dropping it mid-term does not open a new SEP — you'd wait for open enrollment. Only exhausting the full COBRA term reopens an SEP. So the safest time to choose the marketplace is during your initial SEP, before committing to COBRA.
Is COBRA or the marketplace cheaper in 2026?
It depends on your income and household. COBRA is the full unsubsidized premium plus up to a 2% admin fee. A marketplace plan can be subsidized based on income — though the enhanced subsidies lapsed January 1, 2026, so plans cost more than they did in 2021–2025 and the ~400% FPL subsidy cliff is back. For many middle incomes a subsidized silver plan still beats COBRA; above the cliff it may not. Our estimate compares them for your numbers.
Is this financial or legal advice?
No. This is a free educational estimate to help you understand your options and deadlines. It isn't insurance, tax, or legal advice. Confirm your exact deadlines on your COBRA election notice and check plan costs at HealthCare.gov or your state exchange before deciding.