COBRA Alternatives: What to Compare Before You Enroll

COBRA lets you keep your employer's group health plan after leaving a job, but you pay the full premium your employer used to subsidize, plus up to a 2% administrative fee — often 3-4x what you paid as an employee.

The 60-day election window is a common point of confusion: you have 60 days after your qualifying event (job loss, reduced hours, etc.) to elect COBRA, but if you do elect it, coverage is retroactive to your last day of employer coverage — meaning you won't have an actual gap even if you take time to decide.

That 60-day window is exactly when to compare alternatives, not after you've already committed. A private PPO plan, priced through individual underwriting, is frequently cheaper than the COBRA rate for anyone under 55 in reasonably good health.

What you give up with a private plan instead of COBRA: guaranteed issue (COBRA can't deny you or charge more based on health; a private plan can) and staying on the exact same plan/network you had before. What you often gain: a lower premium and, in some cases, a broader network if your former employer's plan was narrow.

Our recommendation: get a private PPO quote before your COBRA election deadline, even if you're leaning toward COBRA. Comparing costs takes one phone call and either confirms COBRA is worth it for your situation or saves you real money starting immediately.