Updated 2026-06-30 · COBRA (29 U.S.C. §1161 et seq.); ACA marketplace (special enrollment)
COBRA vs. ACA marketplace after an H-1B layoff: which is cheaper?
A layoff doesn't just start your immigration clock — it usually ends your health insurance at the same time. Two options fill the gap, and the default (COBRA) is frequently the more expensive one. A few minutes here can save you real money during an already-stressful stretch.
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COBRA: same plan, full price
COBRA lets you keep your exact employer plan after you lose your job — same doctors, same coverage, no restart on deductibles. The catch is cost: you now pay the FULL premium (the part your employer used to cover plus your share), often plus a 2% admin fee. For many people that's several hundred to over a thousand dollars a month. It's the convenient default, but rarely the cheap one.
ACA marketplace: often cheaper for a gap
Losing job-based coverage triggers a Special Enrollment Period on the ACA marketplace (healthcare.gov or your state exchange), so you can enroll outside the normal window. Because marketplace plans can come with income-based subsidies — and your income may be lower now that you're between jobs — an ACA plan is frequently much cheaper than COBRA for a short bridge, though you may switch doctors or reset your deductible.
How to decide quickly
Rule of thumb: if you're mid-treatment or want zero disruption for a very short gap, COBRA's continuity can be worth the price — and you can elect it retroactively within the election window, which is a useful hedge. Otherwise, price an ACA marketplace plan first; the subsidy math often wins. Either way, don't let coverage lapse — line the new plan's start date up against your employer coverage's end date.
This is general information, not legal advice. Your exact outcome depends on your specific facts — country of birth, I-140 status, priority date, and timing — and an immigration attorney can confirm what applies to your case.
Frequently asked questions
Is COBRA or an ACA plan cheaper after a layoff?
For a short gap, an ACA marketplace plan is often cheaper because of income-based subsidies (your income may be lower now). COBRA keeps your exact plan but you pay the full premium plus a fee, which is usually more expensive.
Can I still get an ACA plan outside open enrollment?
Yes. Losing job-based coverage triggers a Special Enrollment Period, so you can enroll on the marketplace outside the normal window.
Can I wait to decide on COBRA?
You generally have an election window and COBRA can be elected retroactively within it, which lets it act as a hedge — but confirm your specific plan's deadline, and don't leave an actual coverage gap.
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