COBRA vs Marketplace Health Insurance After Layoff for Tech Workers: Which Is Cheaper?

FAQ

I have three months of employer-paid COBRA. Should I even look at Marketplace?

Three months is a runway, not a destination. At a Robinhood HC in 2023, a candidate treated subsidized COBRA as “free” and ignored Marketplace enrollment during her SEP. Month four, her premium jumped to $1,840. Her SEP had expired. She was locked out until open enrollment, 187 days away. She paid full freight. Elect subsidized COBRA, but maintain your SEP eligibility by at least initiating a Marketplace application during the overlap window.

Does my HSA work with both COBRA and Marketplace plans?

Not automatically, and not identically. At a Google HC in 2024, a senior PM assumed HSA portability across all coverage types. COBRA continuation of an HDHP maintains HSA eligibility. Most Marketplace Bronze plans are HSA-eligible, but not all — verification required. Silver and above: rarely. His $6,200 HSA balance became taxable income when he selected a non-qualifying Silver plan. The 20% penalty plus ordinary income tax: $2,480 in unexpected liability. Check HSA compatibility before final election.

What happens to my coverage if I’m rehired within 180 days?

At an Amazon HC in Q3 2023, a PM rehired at 165 days faced a coverage gap because she’d disenrolled from COBRA at day 90 to save premiums. Her new role’s benefits started day 30 of employment. She was uninsured for 45 days — technically, briefly, and expensively, when she needed an ER visit. If your rehire probability is above 30% and timeline uncertain, maintain COBRA or Marketplace continuously. The “savings” of a brief gap are illusory against tail risk.

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