2026 tax year · laid off
COBRA vs marketplace calculator
A layoff triggers a 60-day COBRA deadline and a 60-day marketplace special enrollment. For 2026 the subsidy cliff is back, which is cheaper depends on your income.
Losing job-based coverage gives you two options: keep it through COBRA (you now pay the full premium, up to 102%), or buy on the ACA marketplace. The 2026 twist most articles get wrong: the enhanced premium tax credits expired on 31 December 2025, so the hard 400% federal-poverty-level cliff is back. A layoff year is often a low-income year that drops you under the cliff and makes the marketplace far cheaper. But a dollar over it costs the entire subsidy.
Total annual plan cost, we add the 2% admin fee.
Severance + UI + other. A low-income year can beat the cliff.
Second-lowest silver plan on healthcare.gov.
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Worked example
A single person, COBRA at $9,000/year (Box 12 DD), $45,000 income, $520 benchmark plan, over 12 months:
| Option | Monthly | 12-month total |
|---|---|---|
| COBRA | $765 | $9,180 |
| Marketplace (net of subsidy) | $319 | $3,828 |
At $45,000 (about 282% of poverty), a subsidy of $201/month makes the marketplace cheaper, saving about $5,352 over the year versus COBRA. Push income over 400% of poverty and that subsidy drops to zero, flipping the answer.
Questions
Can I wait before electing COBRA?
Yes, you have 60 days to elect, and coverage is retroactive to your loss date if you do. A healthy person can wait and see: only pay COBRA if a medical need comes up in that window. One late payment afterward terminates coverage, so don't miss a due date once enrolled.
What's the 400% FPL cliff?
Above 400% of the federal poverty level, you get $0 in premium tax credit for 2026, the enhanced credits that had removed this cliff expired at the end of 2025. Earning one dollar over the threshold can cost thousands, so a layoff year's lower income can actually help you qualify.
How do I estimate my COBRA premium?
Fastest way: find Box 12 Code DD on your W-2 (the total annual plan cost), divide by 12, and add 2%. That's your monthly COBRA premium. The calculator does this for you.
Next steps
- Unemployment your weekly benefit
- Runway fold the premium into how long your money lasts
- ACA subsidy calculator the credit in detail
- Severance tax
Estimate for the 2026 plan year. ACA subsidy rules can change, last verified 2026-07-24 (enhanced credits still expired). Nothing you enter is stored. Not tax, legal, or insurance advice.