When an employee is separated from a company, they’re now presented with three options: take COBRA, enroll in the Marketplace, or drop insurance altogether. Let’s assume they do want coverage. Here’s a quick look at how COBRA pricing compares to the average Marketplace plan for an individual:

  • The average COBRA premium for single coverage through an employer in 2019 was $611 per month.
  • The average marketplace plan in 2019 was $80 per month after tax credits.
  • That’s a $531 difference.

As you can see Marketplace pricing is much more attractive than COBRA premiums; in fact Marketplace plans can be up to 80% less than COBRA. So it’s not hard to understand why consumers would be drawn to the Marketplace and opt out of COBRA. However, many Americans don’t even know an alternative to COBRA exists. Today, as we are experiencing record levels of unemployment, this is concerning. So tell a friend, tell a neighbor — from an appropriate social distance, of course.

Stay healthy.