COBRA vs Private Health Insurance: Which Should You Choose?
What Is COBRA Coverage?
COBRA (Consolidated Omnibus Budget Reconciliation Act) allows you to keep your employer-sponsored health insurance for a limited time after losing your job or experiencing a qualifying event (like divorce or reduced work hours). You get the same coverage — but now you’re responsible for the full premium plus a 2% admin fee.
While it can be a lifeline during transitions, COBRA can be expensive and isn’t always the best long-term option.
COBRA vs Private Health Insurance: Pros and Cons
| Feature | COBRA | Private Insurance |
|---|---|---|
| Coverage | Same as your group employer plan | Customizable through marketplace or private carriers |
| Cost | 100% of employer plan + 2% fee | Varies — may qualify for subsidies |
| Doctor Network | Same as employer plan | May be narrower, depending on plan |
| Flexibility | Fixed — can’t change plan | More options for deductibles & coverage |
| Eligibility | Must have had employer coverage | Available to anyone, anytime |
Bottom line: COBRA is great for continuity if you’re in treatment or need the same network. But private plans often cost less and offer more flexibility.
Cost Comparison: COBRA vs Private Plans (2025)
Here’s a cost snapshot for a 40-year-old individual losing employer coverage in 2025:
| Plan Type | Monthly Premium | Deductible | Subsidy Eligible? |
|---|---|---|---|
| COBRA | $620 | $1,500 | No |
| Private Marketplace Silver Plan | $380 (after subsidy) | $3,000 | Yes |
| Short-Term Health Plan | $180 | $5,000+ | No |
COBRA tends to be the most expensive unless you’re mid-treatment or can’t risk changing doctors. If you qualify for subsidies, private health plans through the marketplace are significantly cheaper.
How Long Does COBRA Last?
- 🕒 Standard duration: 18 months
- 🕒 Disability extension: up to 29 months
- 🕒 Divorce or death of employee: up to 36 months
Once your COBRA coverage ends, you’ll need to transition to a private or marketplace plan to maintain continuous coverage.
When to Switch to a Private Health Plan
Here are the best times to switch from COBRA to a private plan:
- ✅ Your COBRA premium becomes unaffordable
- ✅ You become eligible for ACA marketplace subsidies
- ✅ Your COBRA coverage is ending (triggering a Special Enrollment Period)
- ✅ You want to add dependents or change coverage
You have 60 days from the end of your COBRA or qualifying event to enroll in a private plan through Healthcare.gov or other platforms.
Find COBRA Alternatives and Compare Quotes
Don’t overpay for health insurance — get personalized quotes and explore COBRA alternatives today:
- Compare ACA Plans at HealthSherpa (Affiliate)
- Shop Private Plans with Policygenius (Affiliate)
- Get Fast Health Quotes from eHealth (Affiliate)
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