If you quit or are terminated from your job, your employer is required to offer you COBRA coverage. Though COBRA is typically more expensive than transitioning to a marketplace plan, it allows you to keep the same coverage for 18 months (or 29 if you’re disabled) after you leave your job. But when your COBRA coverage runs out, where does that leave you?

This can be an understandably scary time. Health coverage is essential, and you don’t want any breaks in your access to care. What’s more, you want coverage that’s cost-effective, which means you may have to consider more affordable health insurance options (more on that in a moment). 

But if you do opt for COBRA coverage, don’t worry — you’ll still have a chance to get new insurance when your COBRA plan is done. (Phew, right?) That’s because losing COBRA is considered a qualifying life event, which allows you to sign up for a marketplace plan. 
Here, we break it all down, including whether or not COBRA coverage is the best option for you and how to replace COBRA once it expires.

Choosing between COBRA and a new marketplace plan

When you leave your job, one of the most critical decisions you'll face is whether to stick with COBRA coverage or switch to a new marketplace health insurance plan. 

When COBRA might be the best choice

If your former employer continues to pay a portion of your insurance premiums, COBRA coverage could be your most cost-effective option. Keeping your existing coverage also means you can keep your current doctors, prescriptions, and network benefits without interruption. This stability is especially valuable if you have ongoing health care needs or have established relationships with specific doctors.

When a marketplace plan might be the best choice

If your employer does not contribute to your COBRA premiums or only covers a small portion, it may be more cost-effective to get a new marketplace plan. These plans often offer a broader range of choices at different price points, and you may qualify for tax credits based on your income. This can make marketplace plans significantly more affordable, especially if you don’t have any special requirements for coverage.

Before making your decision, compare the costs and benefits of both COBRA and marketplace plans. Evaluate factors like monthly premiums, deductibles, co-pays, and out-of-pocket maximums. Also, consider the potential subsidies available through the marketplace that could lower your overall costs.

Sound like a lot of research? Don’t worry — we’ll do the heavy lifting. Enter your ZIP code below to find the marketplace plans available to you (and check for tax credits to help you save) in minutes to compare against the cost of COBRA coverage.

What to do if your employer doesn’t contribute or stops contributing to COBRA coverage

As mentioned, paying in full for COBRA coverage is typically more expensive than getting a new marketplace plan. So if your employer is not going to contribute, finding a marketplace plan is likely your best option.

If your employer stops contributing to your COBRA coverage, it can lead to a big increase in your monthly premiums. Though you still have the option to pay full price to continue your coverage, this is a good opportunity to find a plan that could offer comparable or better coverage at a lower cost. 

Luckily, this change in cost is considered a qualifying life event, which gives you a 60-day window to explore other health insurance options.

What are qualifying life events?

When you experience a qualifying life event, you become eligible for a Special Enrollment Period. This lets you enroll in or switch health insurance plans outside of the yearly Open Enrollment Period that runs from Nov. 1 to Jan. 15 in most states (more on that later). Common qualifying life events include having a baby, getting married, and losing job-based health insurance.

Losing COBRA coverage or losing employer contributions to your COBRA coverage also count as qualifying life events. That’s because losing your COBRA plan against your will is an involuntary loss of coverage. 

If you choose to cancel your COBRA coverage early or stop paying your premiums, however, that’s considered a voluntary loss of coverage. That doesn’t count as a qualifying life event, so you would have to wait until Open Enrollment to get a new plan.

How to get health coverage when you’re losing COBRA

As you near the end of your 18-month COBRA coverage period or the window during which your employer still contributes to your plan, you can begin to look for new coverage. 

It’s also possible that your former employer may end your COBRA coverage early: for instance, if they stop offering your plan. In this case, they have to let you know as soon as possible, according to the Department of Labor. 

Regardless of how you lose COBRA, that uncertainty can feel like a lot. But remember: You have some time to replace your coverage. You get 60 days from the last day of your COBRA coverage or the day your employer stops contributing to apply for a new plan.

If you need to replace your COBRA coverage towards the end of the year, you can also apply for a new plan during Open Enrollment Period. This is the time of year when anyone can get new health insurance from Nov. 1 to Jan. 15.

Still, these enrollment periods can feel like a time crunch when it comes to navigating the confusing world of marketplace health insurance sites. But we’ve got your back. Simplify your search with Stride’s customizable shopping tool, which pinpoints the best insurance options for you with personalized plan recommendations, filters, and side-by-side comparisons. Once you’ve picked your favorite plan, Stride streamlines the entire insurance application process. We’ll help you fill out your application and submit documentation of your loss of COBRA coverage (for example, you may have to mail or upload a letter from your former employer or health insurance provider). Just enter your ZIP code to get started!