COBRA Alternatives in Virginia for 2027
Leaving a job in Virginia gives you three paths: keep your old plan through COBRA or Virginia's continuation law, switch to a Marketplace plan during a special enrollment period, or apply for a private plan that can start on the first of next month if approved. The cheapest path depends on your health, your income for the year and how much of your deductible you have already met. Virginia individual premiums are also rising 15.8% to 16.9% on average for 2027.
Private health insurance in Virginia
Most people I help in Virginia end up on a private plan, not a Marketplace plan. Private, medically underwritten health insurance is priced on your age, zip code and health instead of your income, so a strong year never raises your premium and there is no tax credit to pay back in April.
Why people leave the Marketplace
- Premiums keep climbing. Virginia Marketplace premiums are rising 15.8% to 16.9% on average for 2027.
- The subsidy cliff. Above 400 percent of the poverty level ($63,840 for one person, $132,000 for a family of four) you pay full price.
- Surprise tax bills. Underestimate your income and you repay the tax credit in April.
- Narrow networks. Many plans are local HMOs or EPOs that need referrals and cover little outside the area.
- High out-of-pocket costs. 2027 out-of-pocket maximums reach $12,000 per person and $24,000 per family.
- One window a year. Outside open enrollment you need a qualifying life event to enroll or switch.
What a private plan does differently
- Start any month. If approved, coverage can begin the first of next month, with no wait for open enrollment.
- Networks that travel. Many private plans use national PPO networks, which can give you in-network doctors outside Virginia too. Networks vary by plan.
- Can cost less than full-price Marketplace plans for some healthy applicants above the subsidy line.
- Accident coverage the Marketplace does not offer. A private plan can be paired with accident coverage, a separate policy. What it includes varies by plan.
- Approval is based on health. You answer health questions, and acceptance is not guaranteed.
With a significant health condition, or income low enough for a large tax credit, a Marketplace plan can be the better fit, and I will tell you if it is. Either way you see both side by side.
Private plans are not ACA Marketplace plans. Benefits, exclusions and pre-existing condition rules differ by plan and by state, so review the plan details before you enroll.
Get a private plan quoteLearn more: coverage not based on income · how underwriting works · private vs Obamacare · PPO plans for individuals · switching from the Marketplace
Virginia continuation law
Virginia's continuation law, Code section 38.2-3541, covers group hospital, medical and major medical policies issued in Virginia when the employer is not subject to federal COBRA. The employer must send written notice within 14 days of learning you lost eligibility. You then have 31 days after that notice to apply and pay, but never more than 60 days after coverage ended. Premiums are paid monthly. Anyone fired for gross misconduct is not eligible, and the right applies only to people not yet eligible for Medicare. Employers with 20 or more workers fall under federal COBRA instead.
Switching off COBRA in Virginia
Virginians switch through Virginia's Insurance Marketplace, the state-run exchange. You qualify for a special enrollment period if you lost coverage in the past 60 days or expect to lose it in the next 60, and you have 60 days from the loss to pick a plan. Applying before your continuation ends lets the new plan start right after it. Under federal rules, running out of COBRA counts, but dropping it early does not. A new plan restarts your deductible, so time the move. The Bureau of Insurance helps consumers at 1-877-310-6560.
The Virginia individual market you would switch into
Virginia buyers shop on Virginia's Insurance Marketplace, the state-run exchange and the only place to apply for federal premium tax credits and the new state help called Virginia Premium Savings. Starting with 2027 plans, Virginia Premium Savings lowers premiums for households earning 138 to 250 percent of the federal poverty level, is applied after any federal credit, and is paid from a fixed state appropriation, so funding may not reach everyone who qualifies. Virginia also runs a state reinsurance program, administered by the Bureau of Insurance and approved through 2027, that helps hold down individual-market premiums. The enhanced federal credits ended after 2025, and excess advance credits must now be repaid in full at tax time, so self-employed tradespeople should keep their income estimate current. Leaving a small employer gives you 12 months of state continuation, short-term plans are held to three months at a time and six months in any year, and open enrollment runs to January 29, 2027.
Other Virginia rules to know
- Short-term plans: Virginia law caps short-term plans at an initial term of three months and no more than six months of coverage in any 12-month period, a state limit that applies regardless of how federal rules are enforced.
- Where to enroll: Virginia runs its own exchange, Virginia's Insurance Marketplace, and open enrollment for 2027 coverage runs November 1, 2026 to January 29, 2027, with a December 15 deadline for coverage that starts January 1. Private, medically underwritten plans can start the first of any month if approved.
- 2027 rates: individual plans 15.8% to 16.9% on average, small-group plans about 10.7%. See the Virginia 2027 rate page.
What COBRA really costs
Under federal COBRA, which covers employers with 20 or more employees, you can keep your group plan for up to 18 months but pay up to 102 percent of the full premium, including the share your employer used to pay. That is often the most expensive option available. You have 60 days to elect it, and coverage is retroactive, so some people wait and elect only if they need care.
When COBRA is still worth keeping
Keep COBRA when you have met most of your deductible this year, are in the middle of treatment, or need a specific doctor who is not in other networks. Otherwise compare it against a Marketplace plan, which may come with a tax credit, and a private plan.
Do not miss the 60-day window
Losing job-based coverage opens a 60-day Marketplace special enrollment period. Voluntarily dropping COBRA later does not open a new one outside open enrollment, so decide while the window is open.
For 2027 the Marketplace credit stops at 400 percent of the poverty level: $63,840 for one person, $86,560 for two and $132,000 for a family of four. The out-of-pocket maximum for 2027 Marketplace plans is $12,000 for one person and $24,000 for a family. The full guide covers the rest.
Compare Virginia plans
Licensed in Virginia. Private plans priced first, Marketplace alongside when it fits. No fee.
Virginia questions
Where do Virginia residents enroll in 2027 coverage?
Virginia runs its own exchange, Virginia's Insurance Marketplace, and open enrollment for 2027 coverage runs November 1, 2026 to January 29, 2027, with a December 15 deadline for coverage that starts January 1.
What continuation rights does Virginia give after leaving a small employer?
Virginia requires insured group plans that are not subject to federal COBRA, which generally means employers with fewer than 20 employees, to offer 12 months of continuation after at least three months of coverage, at the group rate plus an administrative fee of up to 2 percent.
How much are Virginia premiums rising for 2027?
Individual-market premiums are set to rise 15.8% to 16.9% on average, and small-group plans about 10.7%.
Is a Marketplace plan cheaper than COBRA?
Often, especially if your income qualifies for a tax credit. Above the subsidy line, a private plan may cost less than both for a healthy buyer.
Can I drop COBRA and get a Marketplace plan later?
Only during open enrollment, unless you have another qualifying event. Your special enrollment window after losing job coverage lasts 60 days.
Sources: law.lis.virginia.gov, www.marketplace.virginia.gov, www.scc.virginia.gov, www.healthcare.gov. Facts checked October 2026. See all Virginia health insurance rules.
COBRA alternatives in other states
Written by Frank Caballero, licensed health insurance agent in Virginia and 30 other states, NPN 21032307.