What alternatives are there to COBRA coverage?

While COBRA allows you to keep your employer-sponsored coverage, it can be expensive. Fortunately, there are several alternatives that may offer more affordable options—especially if you qualify for financial assistance.

đź’ˇ Common COBRA Alternatives:

🏥 Marketplace Coverage (HealthCare.gov or State Exchanges)

  • May be significantly cheaper than COBRA

  • You could qualify for premium tax credits and cost-sharing reductions based on income

  • Enrollment is allowed if you lose group coverage, even outside open enrollment

👪 Spouse’s or Parent’s Plan

  • You may be eligible to enroll in a spouse’s or parent’s employer plan through a special enrollment period

🏛️ Medicaid

  • Available for individuals with low income

  • Can be a free or low-cost option depending on your state and financial situation

🧑‍💼 Short-Term Plans or Other Private Options

  • These may have lower premiums but usually come with limited coverage, no pre-existing condition protection, and fewer consumer protections

🧠 Key Tip:

Compare COBRA to other options before electing—once you choose COBRA, you may not qualify for Marketplace subsidies until your COBRA coverage ends or is exhausted.

Employer Responsibilities