COBRA Ending? How to Get Health Insurance Before It Expires

How long does COBRA last?

COBRA duration depends on the event that triggered it:

• 18 months for job loss or reduction in hours (the most common scenario)
• 36 months for divorce or legal separation from the covered employee, death of the covered employee, or a dependent child aging out of the plan
• 29 months if you become disabled within the first 60 days of COBRA coverage (an 11-month extension on top of the 18)

If you lost your job and elected COBRA, your coverage ends 18 months from your termination date — not 18 months from when you elected COBRA. Many people confuse this and think they have more time than they do.

COBRA exhaustion vs. voluntarily dropping COBRA

This is the single most important distinction in COBRA-to-marketplace transitions:

COBRA exhaustion (running out of your full COBRA term) IS a qualifying life event. When your 18 or 36 months expire, you get a 60-day Special Enrollment Period to enroll in a marketplace plan.

Voluntarily dropping COBRA early is NOT a qualifying life event. If you cancel your COBRA before it runs out, you do not get an SEP. You would have to wait until Open Enrollment in November to get marketplace coverage starting January 1 of the following year.

This means if you're 6 months into COBRA and want to switch to a marketplace plan because it's cheaper, you generally cannot do so mid-year. The exception: if you have another qualifying event (marriage, having a baby, moving to a new coverage area), that would create a separate SEP.

What marketplace plans cost vs. COBRA

The average COBRA premium for individual coverage runs $560-$650 per month in 2026. That's the full unsubsidized cost of your former employer's plan plus a 2% administrative fee. Over 18 months, you're looking at $10,000-$11,700 in premiums alone.

Marketplace plans with subsidies are typically much cheaper. A single person earning $40,000 per year might pay $150-$250/month for a Silver plan after the premium tax credit. That's potentially $400/month less than COBRA.

One thing COBRA has going for it: you keep the same plan with the same network. If you've already met your deductible or are mid-treatment, the math might favor staying on COBRA. But for most people approaching COBRA exhaustion, the marketplace will be significantly cheaper.

Timeline: when to start planning

Don't wait until your COBRA expiration date to start shopping. Here's the timeline:

• 60 days before expiration: Start researching marketplace plans. You can browse plans on HealthCare.gov or ask Nora to compare options in your area without committing to anything.
• 30 days before expiration: Begin your marketplace application. You'll need your income estimate and ZIP code. The application will ask about your current coverage and when it ends.
• Day of expiration: Your 60-day SEP window officially opens. Coverage start date depends on when you enroll — if by the 15th of the month, coverage begins the 1st of the following month.
• 60 days after expiration: Deadline to enroll. Miss this and you wait until Open Enrollment.

Subsidy eligibility after COBRA

While on COBRA, you were paying full price with no subsidy available. When you move to the marketplace, your subsidy is based on your current projected annual income — not what you earned when you had your old job.

If your income situation has changed since you lost your job (new job at lower pay, freelancing, unemployment), your subsidy could be substantial. A single person earning $30,000 in 2026 would qualify for a premium tax credit that could reduce a $450/month Silver plan to under $150/month.

If your income is below about $21,600 (138% FPL for a single person) and you live in a state that expanded Medicaid, you may qualify for Medicaid instead — which is free or nearly free. Medicaid has no enrollment period; you can apply any time.

Documents you'll need

• COBRA expiration notice or a letter from your COBRA administrator showing the coverage end date
• Proof of prior coverage — your COBRA election notice or insurance card showing the coverage period
• Income documentation — recent pay stubs, tax return, or unemployment benefit statements for your subsidy estimate
• Social Security numbers for everyone in your household who needs coverage
• ZIP code — plan availability and pricing vary by county

Common mistakes to avoid

Dropping COBRA early expecting to get an SEP. As covered above, voluntarily ending COBRA does not create a qualifying event. If you cancel early, you're stuck waiting for Open Enrollment. This catches people off guard every year.

Missing the 60-day enrollment window. The SEP starts when COBRA expires, not when you get around to it. Sixty days goes fast. Mark the date on your calendar and start your application within the first two weeks.

Using your old salary for the income estimate. The marketplace asks for your projected annual income for the current year. If you're earning less now than when you had your old job, use your current income. Overestimating means a smaller subsidy and higher monthly premiums.

Not comparing plans carefully. After 18 months on COBRA, you're used to one plan's network and formulary. Marketplace plans have different networks. Check that your doctors and prescriptions are covered before enrolling.

Forgetting about the deductible reset. When you switch to a marketplace plan, your deductible starts over at $0. If you've already spent thousands toward your COBRA plan's deductible, that progress doesn't transfer. Time your switch to minimize the impact — switching at the start of a calendar year is ideal since deductibles reset January 1 anyway.

Step-by-step action plan

1. Find your COBRA expiration date. Check your original COBRA election notice or call your COBRA administrator. Write down the exact date.
2. Calculate your current projected annual income. Include all sources: wages, freelance, unemployment benefits, investment income, Social Security. This determines your subsidy.
3. Browse marketplace plans 30-60 days before expiration. Use Nora or HealthCare.gov to see what's available in your area and what you'd pay after subsidies.
4. Check your doctors and medications. Before picking a plan, verify your providers are in-network and your prescriptions are on the formulary.
5. Submit your marketplace application within the 60-day window. Select "loss of coverage" as your qualifying event and provide your COBRA expiration date.
6. Pay your first premium immediately. Coverage doesn't start until you pay. Don't let the enrollment confirmation fool you into thinking you're covered.