COBRA vs. ACA Marketplace
Which Saves You More?

The premium tax credit limits what you are expected to pay toward the benchmark silver plan (SLCSP) to an applicable percentage of household MAGI. For 2026 this site uses IRS Revenue Procedure 2025-25: 2.10% below 133% FPL (if you are at least 100% FPL), then a rising scale to 9.96% from 300% through 400% FPL. Below 100% FPL and above 400% FPL there is generally no Marketplace credit. Enhanced IRA/ARPA percentages expired December 31, 2025 and are not used. The credit is SLCSP minus that expected contribution. Our SLCSP is a national-average illustration — get the real one at healthcare.gov. See the methodology page for the full table.

Yes. The enhanced premium tax credit rules first expanded in 2021 and later extended by the Inflation Reduction Act applied through plan year 2025 only. They expired December 31, 2025. For 2026 there is again a cliff at 400% of FPL (no credit above that line), and the expected contribution percentages are higher than the 0%–8.5% enhanced scale. This calculator does not keep a leftover IRA table in the code.

The Marketplace Special Enrollment Period that comes from losing job-based coverage is 60 days from that loss of coverage. Enrolling in COBRA does not extend that job-loss SEP — the Marketplace clock keeps running. If that SEP has already closed, voluntarily dropping COBRA (or stopping payment so COBRA ends early) is not a qualifying event for a new Marketplace SEP under current HealthCare.gov rules. You would generally wait until Open Enrollment (typically November 1–January 15) unless a different listed qualifying event happens. Exhausting COBRA when the maximum continuation period ends (often 18 months) can be a new loss of coverage and can open a new SEP. That is why the 60-day wait strategy matters: do not enroll in COBRA as a “temporary bridge” unless you can keep it until exhaustion, Open Enrollment, or another qualifying event. Aligns with the FAQ in our structured data and with How it works.

No. Taking COBRA is not a pause button on the job-loss Marketplace SEP. If you want a subsidized 2026 Marketplace plan, start the HealthCare.gov or state Marketplace application during the 60-day job-loss window even if you are still reading the COBRA notice. You can still elect COBRA later while the separate COBRA election clock is open.

COBRA (Consolidated Omnibus Budget Reconciliation Act) lets you continue your employer's group health insurance after leaving your job, if the employer is subject to federal COBRA. You pay the full premium — both what you used to pay plus the share your employer was covering — plus a 2% administrative fee. Coverage lasts up to 18 months for job loss (36 months in some other circumstances). Small employers may instead be covered by a state mini-COBRA law with different deadlines; read the notice you were sent.

Marketplace premium tax credits generally require MAGI of at least 100% of FPL. If your income is under 138% of the 2026 FPL (about $22,025 for a single person in the 48 contiguous states) and you live in a Medicaid expansion state, you likely qualify for Medicaid rather than a subsidized silver plan. If you live in a non-expansion state (this calculator uses AL, FL, GA, KS, MS, SC, TN, TX, WI, WY) and MAGI is below 100% FPL, you may be in the coverage gap: no expansion Medicaid and no premium tax credit. Select your state so the results screen can flag that. Pregnancy, disability, and parent categories can still open Medicaid in some non-expansion states — ask the state agency.

In 2026 there is no Marketplace premium tax credit above 400% of FPL. That cliff returned when enhanced credits expired. 400% of 2026 FPL is $63,840 for a single person and $132,000 for a household of four in the contiguous states. The calculator will show a clear note and will compare COBRA with an unsubsidized national-average silver illustration. Get a real unsubsidized quote at healthcare.gov before you decide; some bronze plans still undercut family COBRA, and some do not.

ACA silver plans cover the same ten essential health benefits, including preventive care, prescription drugs, and mental health, and they cannot reject you for a pre-existing condition. They are not the same product as your old group plan. Networks, formularies, deductibles, and HSA eligibility often change. If you have ongoing specialist care or are close to meeting a deductible, price those items separately — that is the usual reason COBRA still wins even when a credit exists. Read COBRA vs. Marketplace.

The credit percentage uses the official 2026 IRS applicable-percentage table (Rev. Proc. 2025-25) and 2026 HHS FPL for the 48 contiguous states. The Marketplace premium uses a 2026 national-average benchmark illustration by age — actual premiums vary significantly by ZIP code and insurer, often 20–40% higher or lower. We do not invent ZIP-level premiums. Always verify your actual rate and credit at healthcare.gov before electing or paying. Alaska and Hawaii FPL tables are not used here.

Expected household MAGI for the coverage year: wages already earned, remaining wages, unemployment compensation, severance, a spouse’s income, and other MAGI items (including the Marketplace add-backs such as non-taxable Social Security). Do not use last year’s W-2 if the job is gone. Credits are reconciled on Form 8962; a guess that is far too low can create a tax-time bill. You can usually update a Marketplace application mid-year if income changes.