Reviewed September 2026.
COBRA continuation usually costs about 102% of the full group premium. A COBRA subsidy means someone other than you (a temporary federal program, a state program, or your employer via severance) pays part or all of that premium for a defined window. Deeper mechanics vs PTC and expired HCTC: COBRA premium subsidy basics. Election timing: COBRA election deadline.
What counts (and what does not)
| Label people use | What it actually is | Applies in a typical 2026 layoff? |
|---|---|---|
| ARPA COBRA premium assistance | Federal 100% COBRA help for many assistance-eligible people April 1–September 30, 2021 | No. That statutory window ended |
| New national “free COBRA” program | None as a standing 2026 federal entitlement | Do not budget $0 COBRA unless a new law is in force and your notice says so |
| Employer-paid COBRA months | Severance benefit; employer pays the carrier/administrator | Maybe, if your signed severance letter says so |
| State premium-assistance pilot | Rare, time-limited, state-specific | Only if your election notice or state site documents it |
| Marketplace PTC | Subsidy for exchange plans, not for COBRA premiums | Different product (PTC) |
Continuation rules: COBRA health coverage. Job-loss triage: Sudden job loss.
How to tell if any subsidy applies to you
- Read the COBRA election notice for “premium assistance,” “subsidy,” or employer-pay language. Marketing emails are not the notice.
- Check current DOL EBSA and IRS pages for any open federal assistance period before you assume $0 premiums.
- Read severance for a fixed number of employer-paid COBRA months (for example, 3 months paid, then you pay 102%).
- Do not import 2021 headlines into a 2026 budget spreadsheet.
- If COBRA is full freight, price Marketplace SEP plans in the same sitting (COBRA vs Marketplace SEP).
Worked sketch: ARPA history vs a 2026 notice
Casey is laid off. Family COBRA is quoted at $1,890/month (102% of $1,853).
- Inside the 2021 ARPA window (historical): many assistance-eligible individuals owed $0 employee premium for covered months while the federal program reimbursed the plan.
- On Casey’s 2026 notice with no assistance box checked: Casey owes ~$1,890/month. A Marketplace quote after estimated PTC is $720/month. Casey compares two months of self-paid COBRA (same oncologist, deductible partly met) against switching networks for cash flow. No national COBRA subsidy line item zeroes the bill.
Checklist
- Save the election notice; search it for assistance or employer-pay wording.
- Confirm on current DOL/IRS materials whether any temporary federal subsidy is open.
- Treat ARPA 2021 rules as history, not a live national entitlement.
- Calendar election and payment dates even when an employer is paying this month.
- Price Marketplace coverage if COBRA is full freight.
Educational only. Not insurance, tax, or legal advice. Temporary federal COBRA premium assistance under ARPA ended; confirm any current help only from your notice and official DOL/IRS publications.