COBRA vs ObamaCare in Florida: What to Do If You Lose Your Job

Updated October 13, 2026 · By the Arte Insurance team · 5-minute read

Losing your job usually means losing your job-based health insurance. You have two main choices: keep the same plan with COBRA (or Florida’s state continuation law, if your employer is small), or switch to a Marketplace (ObamaCare) plan, often with a tax credit based on your income. In most cases you have 60 days to decide. Here’s how to compare them.

1. COBRA or Marketplace: the basics

	COBRA	Marketplace (ObamaCare)
What it is	The same plan you had at work, with the same benefits and doctor network as current employees	A new individual plan that you choose
What you pay	The full premium, including the part your employer used to pay, up to 102% of the plan’s cost	Depends on your expected household income for the year. A tax credit can lower it
How long it lasts	Usually up to 18 months after a job loss	As long as you pay your premiums, renewed every year
Deadline	At least 60 days to choose COBRA, then 45 days to pay the first premium	60 days after losing your job-based coverage (you can also pick a plan up to 60 days before)

You don’t have to take COBRA. Compare its cost with Marketplace plans first. Keep in mind that your 60 days for a Marketplace plan start when your job-based coverage ends, even if your COBRA notice arrives later and gives you more time for COBRA.

2. Small employer? Florida’s continuation law

Federal COBRA applies to employers with 20 or more employees. If your employer had fewer than 20 employees and your plan came from an insurance company (not a self-funded plan), Florida’s Health Insurance Coverage Continuation Act may let you keep your plan for up to 18 months. The steps are different:

• You must notify the insurance company in writing within 63 days after the qualifying event, such as the day your job ended (not the day your coverage ends).
• The insurance company then sends you an election notice. You have 30 days after you receive it to choose the coverage and pay the first premium.
• The premium can be up to 115% of the group rate.

If you’re not sure which rule applies, ask your former employer’s human resources contact or the insurance company.

3. How to compare the cost

• COBRA: your election notice shows the monthly premium. You pay all of it, including the share your employer used to pay.
• Marketplace: your savings depend on your household size and your expected income for the year, not on whether you’re working. Count all the income you expect for the year, including unemployment benefits. If your income for the year drops, your tax credit may go up. But if it falls below the federal poverty level, you usually can’t get a tax credit, so check your options first. For 2027, see ObamaCare income limits.
• Being offered COBRA doesn’t make you ineligible for a tax credit if you choose a Marketplace plan instead. But you can’t get a tax credit for months you’re enrolled in COBRA, and the tax credit only applies to Marketplace plans.
• Compare the total yearly cost, not just the premium: add the deductible and copays. See Bronze, Silver or Gold.

4. When COBRA can make sense

• You’re in the middle of treatment and want to keep the same doctors and plan.
• You’ve already paid a lot toward this year’s deductible.
• Your income for the year is too high for a tax credit, and COBRA costs less than similar Marketplace plans.

COBRA is also retroactive: if you choose it by the deadline and pay, it covers you back to the day your job-based plan ended. Your first payment may include premiums for more than one month.

5. Switching later: watch the rules

• During Open Enrollment (November 1 to January 15), you can switch from COBRA to a Marketplace plan for any reason. Enroll by December 15 for coverage that starts January 1.
• Outside Open Enrollment, you can switch if your COBRA runs out, if you have to start paying the full cost because your former employer stops contributing, if you’re still within 60 days of losing your job-based coverage, or if you have another qualifying life event, like a move or a new baby.
• Dropping COBRA on your own, or stopping your payments, doesn’t qualify you for a Special Enrollment Period. You’d usually have to wait for the next Open Enrollment.
• Before you end COBRA, check when your new plan starts, so you don’t have a gap.
• Keep a letter or notice that shows the date your job-based coverage ended. HealthCare.gov may ask for it.

6. Also good to know

• Medicaid and CHIP: you can apply any time of the year. If you have COBRA, don’t end it until you get a final decision on your application. Your children may qualify for Florida KidCare even if you don’t.
• Your spouse’s job-based plan: you may be able to join it, but you usually have to ask within 30 days of losing your coverage.
• Found a new job? If you have a Marketplace plan, report the new job and your new income right away, so your tax credit stays correct. If the new job offers affordable coverage, you may no longer qualify for a tax credit.

7. How Arte Insurance helps

• We put your COBRA notice side by side with Marketplace plans and your estimated tax credit.
• We check your doctors and medicines in each option.
• We help you enroll before your 60 days run out.

Call us at (305) 440-8070 or request a free quote. We help in English and Spanish, and our help is free.

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Arte Insurance is a private, licensed insurance agency (Florida license L116417). We are not HealthCare.gov or a government agency. You can also get help directly from the Marketplace at 1-800-318-2596 (TTY: 1-855-889-4325). This article is general information, not legal or tax advice.

Sources: HealthCare.gov: COBRA coverage when you’re unemployed · HealthCare.gov: Marketplace coverage when you’re unemployed · U.S. Department of Labor: COBRA · U.S. Department of Labor: FAQs on COBRA for workers (PDF) · IRS: questions and answers on the premium tax credit · Florida Statutes, section 627.6692 (Florida Health Insurance Coverage Continuation Act)