Colorado Pre-65 Coverage Calculator: COBRA vs Marketplace

How COBRA and a marketplace plan are compared

The comparison adds premiums and remaining deductible spending on each path for the months you need covered. COBRA keeps your old plan but can cost up to 102% of the full premium, since the employer usually stops contributing (CMS COBRA job aid).

The bridge often runs longer than people expect. Someone retiring at 62 needs roughly three years of coverage before Medicare, so the comparison usually spans at least one January reset and one Open Enrollment season.

1. COBRA premiums: monthly COBRA price × months.
2. COBRA deductible: the lesser of the care you expect and what is left of the deductible after this year’s payments.
3. Marketplace premiums: monthly price after any tax credit × months.
4. Marketplace deductible: the lesser of expected care and the full new deductible, since a new plan starts from zero.
5. Verdict: if the totals are within half a month of COBRA premium, they are called close, and continuity of care should decide.

Pre-65 coverage mistakes around retirement

• Electing COBRA by default. It is familiar, but often the most expensive way to keep coverage. Price both first.
• Forgetting deductibles reset in January. A deductible already paid only helps until December 31. For bridges into a new year, that head start disappears.
• Planning to swap COBRA out later. Dropping COBRA voluntarily outside Open Enrollment does not usually open a Special Enrollment Period. Using up COBRA at the end of its term does.
• Missing the first payment. After electing, the first premium is due within 45 days; coverage then reaches back to the day the job plan ended (CMS).
• Leaving Medicare timing to chance. COBRA does not protect you from the Part B penalty, and the 8-month window after job coverage ends runs while you are on COBRA (Medicare.gov).
• Overlooking a spouse’s employer plan. Losing your own coverage usually lets you join a spouse’s job-based plan mid-year, which may cost less than either option. Ask that employer about its enrollment deadline.

Bridging to 65 in Colorado

Federal COBRA applies to employers with 20 or more employees and generally lasts up to 18 months after a job ends (CMS). Colorado law separately gives a continuation right on many insured plans from smaller employers; the Colorado Division of Insurance can confirm whether yours qualifies.

Individual plans for Coloradans come only through Connect for Health Colorado, where Colorado Premium Assistance can add $80 for the first household member and $29 for each additional one on top of federal credits.

If retirement income drops low, Health First Colorado covers adults up to 133% of the poverty level (138% with the disregard) and accepts applications year-round (HCPF).

Key terms: Pre-65 coverage calculator

COBRA continuation coverage

The right to stay on a former employer’s group plan for a limited time by paying the full premium.

Election period

Usually 60 days from losing coverage or receiving the notice, whichever is later, to choose COBRA.

Retroactive coverage

Once elected and paid, COBRA reaches back to the day the job plan ended.

Deductible already met

What you have paid toward this year’s deductible; it carries over on COBRA but resets on a new plan.

State continuation

A Colorado right to continue many insured plans from smaller employers that federal COBRA does not cover.

Numbers to collect before you retire

• The COBRA election notice with the monthly price.
• Year-to-date deductible and out-of-pocket totals from your current plan.
• Expected household income for the whole calendar year, including severance and retirement withdrawals.
• Your 65th birthday month, so the switch to Medicare can be planned.