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COBRA Cost Calculator

Compare COBRA continuation coverage vs ACA marketplace vs short-term insurance costs for early retirees bridging to Medicare at 65. Find the most affordable health coverage strategy during your retirement transition.

Personal Information

COBRA Coverage

COBRA basics: COBRA allows you to continue your employer health plan for up to 18 months (36 months for dependents in certain cases). You pay 102% of the full premium — the employer share plus your share plus a 2% admin fee.

Alternative Coverage Options

80Score
StrongRetirement readiness

Coverage Strategy Score

You have excellent options for bridging to Medicare. Multiple affordable coverage paths are available, and your income level supports strong ACA subsidies.

Months to Medicare

60

Potential Savings

$9,890

RiskReviewStrong

COBRA Monthly Cost

$2,160

$38,877 over 18 months

ACA Monthly Cost

$796

$47,752 over 60 months

Short-Term Monthly Cost

$961

$57,642 over 60 months

Optimal Strategy Cost

$47,752

Saves $9,890 total

Months Until Medicare

60

Age 60 to 65

COBRA Duration

18 months

Maximum 18 months allowed

Premium Increase from Employer

359%

$400 to $1,836

Monthly Savings (Best vs Worst)

$1,364

Comparing all options

Total Cost Comparison

Projected total healthcare costs across all coverage options over 60 months

Total

$144,271

COBRA (18 mo)

27%

$38,877/yr

ACA Marketplace

33%

$47,752/yr

Short-Term Insurance

40%

$57,642/yr

Monthly Cost Comparison

Average monthly costs including premiums and estimated out-of-pocket expenses

Cumulative Cost Over Time

How total costs accumulate month by month for each coverage option

Month-by-Month Breakdown

Detailed monthly cost comparison across all coverage options with optimal recommendation

MonthCOBRAACABest Cost
1$2,086$704$704
6$2,129$719$719
11$2,173$733$733
16$2,217$748$748
21N/A$764$764
26N/A$780$780
31N/A$796$796
36N/A$812$812
41N/A$829$829
46N/A$846$846
51N/A$863$863
56N/A$881$881
60N/A$895$895

Personalized Insights

Actionable recommendations based on your numbers

5 insights1 priority
Positive#1

Optimal Coverage Strategy

Your most cost-effective path to Medicare: ACA Marketplace for all 60 months. This saves you approximately $9,890 compared to using a single coverage option the entire time.

Watch#2

COBRA Only Covers 18 Months

You need 60 months of coverage, but COBRA is limited to 18 months. You will need to transition to ACA marketplace or short-term insurance after COBRA expires. Plan your transition to avoid any coverage gaps.

Note#3

ACA Marketplace Is Cheaper Than COBRA

An ACA marketplace plan costs $1,364/month less than COBRA on average. Over 18 months, that is $24,552 in savings. However, check that your preferred doctors are in-network.

Positive#4

You May Qualify for ACA Subsidies

At 332% of the Federal Poverty Level, you likely qualify for premium tax credits that reduce your ACA marketplace costs. Managing your retirement income (MAGI) can maximize these subsidies.

Note#5

Pre-Existing Conditions Matter

COBRA and ACA marketplace plans must cover pre-existing conditions. Short-term plans typically do not. If you have ongoing health needs, factor this into your decision beyond just monthly premium costs.