COBRA & Under-65 Health Insurance Guidance
Reviewed by Prodest Insurance Group, a licensed insurance agency (NPN 19515569) · Updated 26 October 2026 against current federal guidance.
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| Date | What happens | Coverage starts |
|---|---|---|
| November 1, 2026 | Open Enrollment opens on HealthCare.gov | – |
| December 15, 2026 | Last day to enroll for a January start | January 1, 2027 |
| January 15, 2027 | Open Enrollment closes on HealthCare.gov | February 1, 2027 |
A 2025 federal rule would have ended Open Enrollment on December 15. A federal court set that change aside, and CMS has confirmed the January 15 close for 2027 coverage. The government has appealed, and states that run their own exchanges can set different dates, so confirm the deadline on HealthCare.gov or your state's exchange before you rely on it.
For most of the year, leaving COBRA early is a trap. Dropping it by choice, or letting it lapse for non-payment, is not a qualifying event, so it does not open a Special Enrollment Period. You would be uninsured until the next Open Enrollment. What counts as losing COBRA →
Open Enrollment removes that problem. During the window, no qualifying event is needed, so you can pick a Marketplace plan for 2027 and end COBRA when the new coverage starts.
There is a second reason the timing matters. You cannot receive Marketplace premium tax credits for any month you are enrolled in COBRA. Being offered COBRA does not block them, but being on it does. Once your COBRA ends, a Marketplace plan can be subsidized if your income qualifies.
| COBRA | Obamacare (Marketplace) | |
|---|---|---|
| Monthly cost | Up to 102% of the full premium, about $793 a month single on national averages | Depends on age, location, plan, and income; tax credits can lower it sharply |
| Help paying | None from the government | Premium tax credits for incomes between 100% and 400% of the federal poverty level |
| Doctors | Same plan and network you had at work | New plan; check that your doctors are in network |
| Deductible | Progress carries over for the rest of the plan year | Starts at zero on January 1 |
| How long | Usually 18 months, sometimes 29 or 36 | Renews each year with no end date |
| Dental and vision | Can continue if you had them at work | Usually separate, except children's dental in some plans |
The deductible is the main reason people stay on COBRA when a Marketplace plan looks cheaper. If you have already met most of this year's deductible, switching mid-year means starting over.
Open Enrollment largely removes that cost. A Marketplace plan chosen now starts on January 1, and if your former employer's plan also runs on a calendar year, its deductible resets on January 1 as well. Either way you start 2027 at zero, so the deductible you have already paid is not lost by switching.
The exception is an employer plan that renews on another date, such as July 1. Check your plan year on your COBRA paperwork before you assume the two line up.
The enhanced premium tax credits that started in 2021 expired at the end of 2025. Households earning above 400 percent of the federal poverty level no longer receive any tax credit, and premiums rose sharply for 2026 and again for 2027.
That cuts both ways. If your income is modest, a subsidized Marketplace plan can still cost far less than COBRA. If your income is above the 400 percent line, the full-price Marketplace plan may cost about as much as COBRA, and keeping your current doctors can tip the decision. How Marketplace pricing works now →
Yes. During Open Enrollment, from November 1, 2026 to January 15, 2027 on HealthCare.gov, you can choose a Marketplace plan without a qualifying event, even if you are leaving COBRA by choice. Enroll by December 15 for coverage that starts January 1.
Not for any month you are enrolled in COBRA. Being eligible for COBRA does not block premium tax credits, but being enrolled does. Once COBRA ends, a Marketplace plan can be subsidized if your household income qualifies.
It depends mostly on income. With premium tax credits, a Marketplace plan is often far cheaper than COBRA, which averages about $793 a month for one person. Above 400 percent of the federal poverty level there are no tax credits for 2027, so the two can cost about the same.
Not until your Marketplace plan is confirmed. If you enroll by December 15, the new plan starts January 1, so ask the COBRA administrator to end coverage on December 31 and keep paying until then to avoid a gap.
Outside Open Enrollment you need a qualifying event to join a Marketplace plan. Dropping COBRA by choice does not count, but reaching the end of your COBRA period does, and it opens a 60-day window.
Yes. People on COBRA get the same open enrollment rights as current employees, so you can switch among your former employer's plan options during its annual enrollment period, which may fall at a different time than Marketplace Open Enrollment.
Prefer to talk? Call (888) 918-4516 · Monday to Friday, 10:00 a.m. to 5:30 p.m. Eastern
This website provides educational information about health insurance and is a solicitation for insurance. It is a non-government website operated by Prodest Insurance Group, a health insurance agency that presents health plans, which may include Affordable Care Act (ACA) plans, private health insurance, short-term medical insurance, or supplemental insurance based on the consumer's selection. Qualified ACA plans must meet or exceed the essential benefit requirements of the Affordable Care Act; non-ACA plans are not required to provide all of the essential benefit requirements contained in the Affordable Care Act. Pre-existing condition provisions, benefit availability, limitations and exclusions vary by plan type and state. You should review all plan details and product brochures before purchase. To qualify for ACA health insurance coverage outside of the open enrollment period, you must meet special enrollment requirements.
*Eligibility for Affordable Care Act (ACA) Advance Premium Tax Credit (APTC) and cost-sharing reductions is based on annual federal income thresholds, household size, and plan availability within the applicable service area. Premium rates, plan availability, and subsidy amounts vary by state and marketplace. Final eligibility and premium obligations are determined by the Health Insurance Marketplace under Internal Revenue Code Section 36B and applicable federal regulations.
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