Money in One Chart

bad month

After a layoff, you have 60 days to decide on health coverage, and both doors close on their own.

COBRA gives you 60 days to elect and up to 18 months of the same plan at full price. The marketplace gives you 60 days to enroll with savings based on your new income.

You asked for the two-door comparison. It is below, as the slides from the post, then the one move, then the tool the chart points at.

Slide 1 of 7: After a layoff, you have 60 days to decide on health coverage, and both doors close on their own.Slide 2 of 7: COBRA against the marketplace after a layoff.Slide 3 of 7: The COBRA premium is the whole cost of the plan, including the part your employer used to pay, and that part is usually the larger share.Slide 4 of 7: Marketplace savings are based on what you expect to earn this year, and a layoff changes that estimate.Slide 5 of 7: If you are mid-treatment and need the same doctors, COBRA's continuity may be worth the price.Slide 6 of 7: Three steps, in order.Slide 7 of 7: Save this for the week it happens.

Three steps, in order.

  1. 01
    Note the date coverage ends, from the severance letter.Both 60-day clocks run from around that date.
  2. 02
    Apply on the marketplace and see the price with savings.Free, half an hour.
  3. 03
    Compare it to the COBRA number on the election notice, then choose.Before day 60.

The tool this chart points at

A high-yield savings account

FDIC-insured, no monthly fee, no minimum balance. Where the emergency fund lives.

Open it

This link may pay Money in One Chart a referral fee if you open an account. Your price does not change. How that works.

Sources: DOL EBSA COBRA FAQ; HealthCare.gov.

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