COBRA Insurance: Is It Worth It? Costs, Alternatives & What to Know
2026-04-06 · 2 min read
What Is COBRA?
COBRA (Consolidated Omnibus Budget Reconciliation Act) allows you to continue your employer's health insurance for up to 18 months after leaving your job. The catch? You pay the full premium — what you were paying plus what your employer was paying — plus a 2% administrative fee.
The Real Cost of COBRA
The average COBRA premium is $650/month for an individual and $1,800/month for a family. That's because employers typically subsidize 70-80% of health insurance costs. When you lose that subsidy, the full price can be shocking.
COBRA vs. Marketplace Plans
Many people discover that ACA Marketplace plans are significantly cheaper than COBRA, especially with premium tax credits. Job loss is a qualifying life event that triggers a 60-day special enrollment period. Before defaulting to COBRA, compare your marketplace options — you might save hundreds per month.
When COBRA Makes Sense
COBRA can make sense if you're in the middle of treatment with a specific provider not available on marketplace plans, if you've already met your deductible for the year, or if you expect to start a new job with benefits within a few months.