Honest comparison
Private PPO vs. COBRA coverage.
COBRA is the option that finds you — a packet arrives after you leave a job, the price is startling, and there's a deadline attached.
The comparison is unusually clean, because COBRA isn't a different plan. It's the exact plan you already had, with the employer's share of the premium now on you. That makes it excellent in a few specific situations and very expensive in most others.
The alternative
COBRA
Continuation of your former employer's group plan at full cost.
Where it genuinely wins
- Identical coverage — same network, same deductible, same doctors, no disruption
- Any deductible and out-of-pocket amounts you've already met carry over for the plan year
- Guaranteed — no underwriting, no health questions
- Covers dependents already on the plan
- Can be elected retroactively within the election window, which works as a safety net
Where it costs you
- You pay the full premium plus up to a 2% administrative fee — typically several times what was coming out of your paycheck
- Time-limited, usually 18 months
- Ends if the employer drops the group plan entirely
- No ability to right-size the coverage to what you actually need now
What we do
Private PPOYour own underwritten policy, priced for your household rather than a group.
Where it genuinely wins
- Frequently a fraction of the COBRA premium for a healthy applicant
- Not time-limited — the policy is yours as long as you keep it in force
- You choose the deductible and network breadth rather than inheriting them
- Can start any day of the year
Where it costs you
- Medically underwritten — an active condition may be excluded or rated
- Your deductible resets; anything you've paid toward the old plan's deductible doesn't transfer
- You may have to change doctors if yours aren't in the new network
- Not the right move mid-treatment
Side by side
The differences that actually change your bill.
| Feature | COBRA | Private PPO |
|---|---|---|
| What you're buying | The exact plan you had | A new individual policy |
| Typical cost | Full group premium + up to 2% | Priced to your household |
| Health questions | None | Yes — underwritten |
| Deductible credit | Carries over for the plan year | Resets |
| How long it lasts | Usually up to 18 months | As long as you keep it |
| Keep your doctors | Guaranteed | Depends on the network |
| Start date | Retroactive to your coverage end | Typically the 1st of a following month |
| Can you be declined? | No | Yes |
What you're buying
COBRA
The exact plan you had
Private PPO
A new individual policy
Typical cost
COBRA
Full group premium + up to 2%
Private PPO
Priced to your household
Health questions
COBRA
None
Private PPO
Yes — underwritten
Deductible credit
COBRA
Carries over for the plan year
Private PPO
Resets
How long it lasts
COBRA
Usually up to 18 months
Private PPO
As long as you keep it
Keep your doctors
COBRA
Guaranteed
Private PPO
Depends on the network
Start date
COBRA
Retroactive to your coverage end
Private PPO
Typically the 1st of a following month
Can you be declined?
COBRA
No
Private PPO
Yes
Actual premiums, deductibles, networks and benefits vary by age, location, household, health history and the plan selected.
The questions behind it
What people ask once they’ve seen the table.
Why is COBRA so much more expensive than what I was paying?
Because you were only ever paying part of it. Employers commonly cover a large share of the premium for the employee and a meaningful share for dependents. That contribution disappears the day you leave, so the number on the COBRA packet is close to the true cost of the plan.
Nothing about the coverage got worse. The subsidy just moved from your employer to you.
I'm in the middle of treatment. Does that change the answer?
Substantially, yes. If you're mid-treatment, scheduled for a procedure, pregnant, or managing an active condition, COBRA is usually the right call even at the higher price. You keep the same doctors, the same authorizations, and the deductible you've already paid down.
This is one of the clearest cases where we'd tell you not to buy from us.
How long do I actually have to decide?
You generally get a 60-day election window, and coverage is retroactive to the date your group plan ended if you elect within it. That retroactivity is COBRA's most underrated feature: it functions as a free safety net while you shop.
A common approach is to apply for private coverage immediately, see whether it's approved and at what price, and elect COBRA only if the private route falls through. Confirm the exact dates on your own notice before relying on this — the windows are strict.
What happens when COBRA runs out?
Losing COBRA at the end of its term is itself a qualifying life event for a marketplace special enrollment period. You can also apply for private coverage at that point, subject to underwriting.
The risk worth planning for: if your health changes during the COBRA period, underwritten coverage may be harder to get later than it would be now. If you're leaning toward private coverage anyway, applying early is usually better than applying at month 17.
COBRA is better if…
- You're mid-treatment or have a procedure scheduled
- You've already met most of your deductible this plan year
- Your doctors are essential to you and only in that network
- You expect new group coverage within a couple of months
Private PPO is better if…
- You and your household are in good health
- The COBRA premium is more than you can comfortably carry
- You need coverage for longer than 18 months
- You'd rather choose the deductible and network yourself
The plain-language verdict
COBRA buys continuity, and continuity is genuinely worth paying for when you're mid-treatment or deep into your deductible. Outside of those cases it's usually the most expensive way to stay covered, and a healthy household can often be underwritten into comparable or broader PPO coverage for far less. Run both numbers before the election deadline rather than after it.
Still not sure?
Ask a licensed advisor. It's free either way.
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