COBRA or the marketplace? The 2027 comparison has changed.
A former employee choosing between COBRA and a HealthCare.gov plan now compares COBRA’s cost with a marketplace plan priced about 13% higher on average, as KFF estimates. Employers hear the questions first.
You are not the adviser on the marketplace side, but you do need to give accurate COBRA information and keep the election notices on time. Send us your renewal and we will give you a second opinion in writing.
Three facts to share with departing employees.
What COBRA costs
A qualified beneficiary can be charged up to 102% of the full cost of coverage (ERISA §602(3), 29 U.S.C. §1162(3)). See what COBRA actually costs.
Losing coverage opens a window
Loss of employer coverage generally opens a marketplace special enrollment period, so a departing employee does not have to wait for open enrollment to look at options. HealthCare.gov lists the rules and the timing.
Dropping COBRA early
Voluntarily ending COBRA outside open enrollment does not by itself open a marketplace special enrollment period. Employees who plan to move from COBRA to the marketplace should plan around the open-enrollment dates, which DIFS lists as November 1, 2026 through January 15, 2027.
Keep reading.
HealthCare.gov premiums rise again in 2027
What the 2027 marketplace increases mean for an employer plan. Back to the marketplace page.
Keep reading on 2027 marketplace premiums.
Where these figures and rules come from.
Figures and rules
COBRA premium limit: ERISA §602(3), 29 U.S.C. §1162(3); IRC §4980B(f)(2)(C). DIFS, Open enrollment is coming (October 26, 2026). KFF and The Hill: KFF estimates about 13% for HealthCare.gov in 2027, as reported by The Hill on October 31, 2026; KFF’s review of insurer filings found a median proposed increase of 15% (KFF, How Much and Why ACA Marketplace Premiums Are Going Up in 2027). This page is general information, not legal or tax advice.
Send us your renewal.
Four documents — the renewal letter, the plan summary, the contribution split by tier and enrolled counts by tier. We’ll come back with a competitive read, where we see opportunity, and the five questions we’d put to your carrier.
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