COBRA vs ACA Health Insurance Cost Estimator
Compare the total cost of COBRA health coverage against subsidized ACA Marketplace plans.
How much of your annual deductible have you *not* yet met on your employer plan? This progress rolls over.
The annual deductible for the new ACA plan. This starts fresh at $0.
The number of dependents you claim on your federal tax return.
Modified Adjusted Gross Income (MAGI) for the current year. Includes unemployment benefits.
The number of months left in the current year that you will need coverage.
What is the COBRA vs ACA Health Insurance Cost Estimator?
The COBRA vs ACA Health Insurance Cost Estimator helps laid-off employees, job transitioners, and early retirees compare the net expenses of keeping their employer's group plan under COBRA versus switching to an individual plan on the ACA (Obamacare) Marketplace. The tool estimates federal Premium Tax Credits (subsidies) based on 2026 Federal Poverty Levels, compares monthly net premiums, and models mid-year out-of-pocket costs â including the critical impact of resetting deductibles.
How Does the COBRA vs ACA Health Insurance Cost Estimator Work?
1. Enter COBRA Plan Details â Input your monthly COBRA premium (usually 102% of group cost) and your remaining annual deductible.
2. Enter ACA Plan Details â Input the gross monthly premium and annual deductible of an ACA Silver marketplace plan.
3. Provide Household & Income Info â Enter your tax household size and estimated annual income (MAGI) to calculate subsidy eligibility.
4. Input Months Remaining & Care Costs â Set the number of months left in the calendar year and your expected medical bills.
5. Compare Net Out-of-Pocket â Review which plan offers the lowest total cost (premiums + medical bills).
Formula & Calculation Method
ACA Subsidy Calculation:
Federal Poverty Level (FPL) = $15,600 + (Household Size - 1) Ã $5,600
Income % of FPL = (Household Income / FPL) Ã 100
Expected Premium Contribution % = Scaled sliding scale based on FPL % (capped at 8.5%)
Max Monthly Premium = (Household Income à Expected Contribution %) / 12
Monthly ACA Subsidy = ACA Gross Premium - Max Monthly Premium
Net ACA Monthly Premium = ACA Gross Premium - Monthly ACA Subsidy
Plan Cost Projections:
COBRA Total Cost = (COBRA Premium à Months Remaining) + Min(Expected Medical Bills, Remaining COBRA Deductible)
ACA Total Cost = (Net ACA Premium à Months Remaining) + Min(Expected Medical Bills, ACA Deductible)
Net Savings:
Savings = COBRA Total Cost - ACA Total Cost
Example Calculation
Example: Laid-off employee with 6 months left in the year and $500 in expected medical expenses.
- COBRA Plan: $700/mo premium, $1,00, remaining deductible.
- ACA Silver Plan: $600/mo gross premium, $3,000 deductible.
- Household: 1 person, $35,000 annual income (MAGI).
ACA Subsidy:
- FPL = $15,600 | Income % of FPL = 224%
- Expected Contribution = 2.96%
- Max Monthly Premium = ($35,000 Ã 2.96%) / 12 = $86.33
- Monthly ACA Subsidy = $600 - $86.33 = $513.67
- Net ACA Premium: $86.33 / month
Cost Comparison:
- COBRA Cost: ($700 Ã 6) + Min($500, $1,000) = $4,200 + $500 = $4,700
- ACA Cost: ($86.33 Ã 6) + Min($500, $3,000) = $518 + $500 = $1,018
- Winner: Switching to ACA saves you $3,682 over 6 months!
Frequently Asked Questions
**ACA Subsidy Calculation:** Federal Poverty Level (FPL) = $15,600 + (Household Size - 1) à $5,600 Income % of FPL = (Household Income / FPL) à 100 Expected Premium Contribution % = Scaled sliding scale based on FPL % (capped at 8.5%) Max Monthly Premium = (Household Income à Expected Contribution %) / 12 Monthly ACA Subsidy = ACA Gross Premium - Max Monthly Premium Net ACA Monthly Premium = ACA Gross Premium - Monthly ACA Subsidy **Plan Cost Projections:** COBRA Total Cost = (COBRA Premium à Months Remaining) + Min(Expected Medical Bills, Remaining COBRA Deductible) ACA Total Cost = (Net ACA Premium à Months Remaining) + Min(Expected Medical Bills, ACA Deductible) **Net Savings:** Savings = COBRA Total Cost - ACA Total Cost
Disclaimer: This financial calculator is provided for educational and estimation purposes only. ProCalc is not a registered financial advisor or SEBI entity. Rates and tax rules may vary.