Divorce · Financial guide

Should I choose COBRA or marketplace insurance after divorce?

Quick answer

COBRA preserves your existing employer-sponsored coverage for up to 36 months after divorce, but you pay the full premium plus a 2% admin fee — averaging $717/month for individuals and $2,042/month for families (BLS, 2025).

$717/moAvg COBRA premium (BLS)
$280/moAvg marketplace premium
$5,244/yrAnnual savings switching
60 daysCOBRA retroactive window

The full picture

COBRA preserves your existing employer-sponsored coverage for up to 36 months after divorce, but you pay the full premium plus a 2% admin fee — averaging $717/month for individuals and $2,042/month for families (BLS, 2025). Marketplace (ACA) plans with income-based subsidies typically cost $280-$450/month for equivalent coverage. The key insight most people miss: COBRA enrollment is retroactive within 60 days, so you can apply for marketplace coverage first, and only elect COBRA if you need it for a gap period.

The annual savings of choosing marketplace over COBRA average $5,244.

Model this decision with your actual numbers

The PivotReset Decision Support Engine shows you the 12-month financial projection for each path.

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