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, so which is cheaper depends on your income.
Your coverage options
Updated for 2026 rulesTotal 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.
COBRA vs the marketplace
Nothing you enter is stored or sent anywhere, it runs in your browser. Press Compare COBRA vs marketplace.
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.
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 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.