COBRA vs. Marketplace Bridge Cost Estimator

Stack COBRA premiums against a comparable ACA marketplace plan to see which bridge option costs less during a coverage gap. Enter both monthly premiums, any advance premium tax credit, the expected coverage length, and an optional dependent count to view net monthly marketplace premiums, the total savings or extra cost, and the per-person impact.

Full monthly COBRA premium including the 2% administration fee if charged by the employer.
Monthly benchmark premium for the ACA plan before subsidies or cost-sharing reductions.
Optional — defaults to $0.00. Enter the monthly advance premium tax credit applied to the marketplace plan.
Number of months you expect to keep the temporary coverage in force.
Optional — defaults to 1. Used to show per-person savings or extra cost for the household.

Premium estimates only. Confirm subsidy eligibility, plan networks, and enrollment windows with the ACA exchange or your benefits administrator before cancelling COBRA coverage.

Examples

  • Scenario 1 – High COBRA premium, strong subsidy: $820.00 COBRA, $540.00 marketplace, $220.00 tax credit, 6 months, 2 dependents ⇒ Net marketplace premium after subsidy: $320.00 per month. COBRA total cost: $4,920.00 vs. marketplace total: $1,920.00 over 6 months. Marketplace saves $3,000.00 ($500.00 each month). Per-person savings choosing the marketplace: $1,500.00.
  • Scenario 2 – Marketplace plan without subsidies: $675.00 COBRA, $740.00 marketplace, no credit, 4 months, default dependents ⇒ Net marketplace premium after subsidy: $740.00 per month. COBRA total cost: $2,700.00 vs. marketplace total: $2,960.00 over 4 months. COBRA saves $260.00 ($65.00 each month). Per-person savings staying on COBRA: $260.00.

FAQ

Does the calculator include deductibles or out-of-pocket maximums?

No. It compares monthly premiums only. Evaluate deductibles, copays, network access, and prescription coverage separately before switching plans.

What happens if my subsidy exceeds the marketplace premium?

The net premium is floored at $0.00 so excess tax credits do not produce negative premiums. Any unused credit is reconciled on IRS Form 8962 when you file taxes.

How should I estimate the advance premium tax credit?

Use the amount quoted on Healthcare.gov or your state exchange. If you are unsure, leave the field blank to model a worst-case scenario without subsidies or enter the advance credit from your Marketplace eligibility notice.

Can I add dental or vision premiums?

Yes. Add those amounts to the applicable monthly premium so the comparison reflects your full interim coverage cost, or run separate scenarios for medical and ancillary plans.

How do employer severance subsidies factor into the result?

If your former employer subsidizes COBRA during severance, subtract that subsidy from the COBRA premium before running the calculation so the result captures your true out-of-pocket cost.

Additional Information

  • Net marketplace premium equals the benchmark premium minus any advance premium tax credit, floored at zero.
  • Total cost multiplies each monthly premium by the bridge coverage length you select.
  • Positive savings indicate the marketplace option is cheaper; negative values mean COBRA costs less over the same window.
  • Per-person impact divides the total difference by covered lives to highlight the household-level effect.
  • All savings outputs remain in U.S. dollars ($) to align with ACA marketplace pricing and COBRA billing statements.

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