Losing your job means losing your health insurance, and figuring out your options can be overwhelming. The two main paths are COBRA and the ACA Marketplace. Here's how to decide which is right for you.

What is COBRA?

COBRA (Consolidated Omnibus Budget Reconciliation Act) lets you continue your employer's health plan for up to 18 months after leaving. The catch? You pay the full premium plus a 2% administrative fee.

COBRA Pros

• Keep your exact same coverage
• Keep your same doctors and network
• No gaps in coverage
• Good for ongoing treatments

COBRA Cons

• Expensive - full premium costs $600-$2,500/month for families
• No subsidies available
• Temporary (18 months max)

What is ACA Marketplace Insurance?

The Affordable Care Act marketplace (Healthcare.gov or your state exchange) offers individual plans with potential subsidies based on your income.

ACA Pros

• Subsidies can dramatically reduce costs
• Permanent coverage (not time-limited)
• Various plan levels (Bronze, Silver, Gold, Platinum)
• Layoff qualifies you for Special Enrollment Period

ACA Cons

• May need to switch doctors
• Different networks and coverage
• Application process takes time

How to Decide: A Quick Framework

Choose COBRA if:

• You're in the middle of treatment with a specific doctor
• You expect to get a new job with benefits within 2-3 months
• Your employer subsidizes COBRA (some do)
• Your income is too high for ACA subsidies

Choose ACA if:

• Your layoff significantly reduced your income
• You expect to be unemployed for 3+ months
• You're flexible about changing providers
• COBRA premiums are unaffordable

The Math: A Real Example

Let's say your COBRA premium is $1,800/month for family coverage. Over 6 months, that's $10,800.

If your expected income this year is $60,000 (accounting for the layoff), you might qualify for an ACA Silver plan at $400-600/month after subsidies. That's $2,400-$3,600 for 6 months.

Potential savings: $7,200-$8,400

Important Deadlines

• COBRA: You have 60 days from your layoff to elect COBRA coverage
• ACA: You have 60 days for Special Enrollment Period

The Bridge Strategy

Some people use a hybrid approach: Start with COBRA (retroactive coverage is allowed) while you explore ACA options. If ACA is better, switch before the deadline. If you find a job quickly, COBRA was seamless.