Skip to content

Licensed advisors in all 50 states

Mon–Fri 8am–8pm ET · Sat 9am–5pm ET

Direct Healthcare Choice

Private PPO vs. COBRA Coverage

COBRA is the one option where you already know exactly what you are getting, because it is the plan you just had. What changes is the bill: your employer stops paying its share, so the premium you see is the true cost of that plan plus an administrative fee. For some people that is money well spent. For others it is two or three times what equivalent coverage costs elsewhere. The deciding factors are unusually concrete, which makes this an easy comparison to do honestly.

The alternative

COBRA continuation

The federal right to keep your former employer's group plan for a limited period after your coverage would otherwise end, at your own expense.

  • Identical plan, identical network, identical doctors — nothing to re-check
  • Your deductible and out-of-pocket spend for the year carry over
  • No health questions and no possibility of being declined
  • You pay the full premium plus up to 2% admin — often $600–$2,000+ a month
  • Generally limited to 18 months, sometimes longer in specific situations
  • You have a 60-day election window, and it is retroactive if you elect it
What we do

Privately underwritten PPO

New coverage of your own, priced on your health rather than your former employer's group, with no end date tied to your last job.

  • Frequently a fraction of a COBRA premium for a healthy applicant
  • Yours to keep — it does not expire after 18 months
  • Broad nationwide PPO networks, often wider than a regional group plan
  • Underwritten, so health history affects eligibility and price
  • Your deductible resets — money already spent this year does not transfer
  • Your specific doctors need to be checked against the new network

Line by line

Where each one actually wins.

Monthly cost

COBRA
Full group premium, unsubsidised
Direct Healthcare Choice
Often materially lower if you qualify

Edge: Direct Healthcare Choice

Keeping your exact doctors

COBRA
Guaranteed — same network
Direct Healthcare Choice
Needs checking, often yes on a national PPO

Edge: COBRA

Health questions

COBRA
None
Direct Healthcare Choice
Yes — you can be declined

Edge: COBRA

Deductible already met this year

COBRA
Carries over
Direct Healthcare Choice
Resets to zero

Edge: COBRA

How long it lasts

COBRA
Typically 18 months, then it ends
Direct Healthcare Choice
Ongoing, as long as you keep it

Edge: Direct Healthcare Choice

Mid-treatment continuity

COBRA
Uninterrupted
Direct Healthcare Choice
Depends on the new plan and network

Edge: COBRA

Coverage while travelling

COBRA
Whatever the group plan allowed
Direct Healthcare Choice
Generally nationwide in-network

Edge: Direct Healthcare Choice

Retroactive start

COBRA
Yes, back to your coverage end date
Direct Healthcare Choice
No — coverage starts going forward

Edge: COBRA

General comparison of plan types, not of any specific plan. Benefits, exclusions, networks and eligibility vary by plan, by state and by individual circumstances.

COBRA is the better choice if

  • You are in active treatment, or have a surgery or procedure scheduled
  • You have already met a meaningful part of this year's deductible
  • A specific specialist or care team is not something you will change
  • Your gap is short — a few months before new employer coverage starts
  • A health condition makes underwriting unlikely to go in your favour

A private PPO is the better choice if

  • You are healthy and the COBRA premium is the shock in this whole situation
  • You are going independent and need coverage that outlasts 18 months
  • Your former group network was regional and you now work or travel widely
  • It is early in the plan year, so little deductible is at stake
  • You would rather own the plan than rent your old employer's

The verdict

COBRA buys certainty, and in the middle of treatment certainty is the right thing to buy even at an uncomfortable price. Outside of that, it is usually the most expensive way to stay insured, and healthy applicants routinely find equivalent or broader PPO coverage for a fraction of it. Because COBRA is retroactive for 60 days, the smart order is almost always to get the private comparison first — you lose nothing by looking, and the election window stays open while you do.

Talk it through

The right choice depends on your household.

A comparison page can show the trade-offs. Only a conversation about your state, your health history and your budget can tell you which side of it you're on. That's what the one call is for.

  • A licensed advisor checks what's available where you live
  • Exclusions and waiting periods explained before you commit
  • If the alternative is genuinely better for you, they'll say so
Start My Free Review
A woman at her kitchen table looking tired over the paperwork

Straight answers

No small print, no hedging.

The questions people actually ask on the first call — answered here so the call can be about you instead.

Why is COBRA so much more expensive than what I was paying?

Because you were only ever paying part of it. Employers typically cover the large majority of a group premium, and COBRA simply shifts the whole cost to you plus up to a 2% administrative charge. The plan did not get worse and the price did not rise — you are just seeing the real number for the first time.

I am in the middle of treatment. Does that settle it?

Usually, yes — and that is the case for taking COBRA even at full price. Mid-treatment, a carried-over deductible and an uninterrupted network relationship are worth more than a lower premium. Underwriting is also unlikely to go your way while a condition is active.

I have 60 days to elect COBRA. Should I use them?

Use them deliberately. COBRA is retroactive to the day your coverage ended, so you can compare privately underwritten options first and still elect COBRA inside the window if the comparison goes that way. What you should not do is let the window lapse by accident while you decide.

What happens when my 18 months run out?

You need new coverage at that point regardless, and you will be shopping at whatever health you are in then. Some people use COBRA to bridge a short gap and move to private coverage while they are still easily insurable; others take private coverage immediately for exactly that reason.

Keep comparing

vs. ACA Marketplacevs. Short-Term Plansvs. Health Sharingvs. HMOLosing employer coverage

Get a straight answer

Not sure which side you land on?

Five questions, one licensed advisor, and an honest read on whether this is your better option — or whether something else is.

  • Pre-existing conditions covered
  • Apply any day of the year
  • Your details are never sold

Free coverage review

Step 1 of 5

Let's find your coverage

Start with your state.

Secure & confidentialTakes about 30 seconds

Secure & private. By submitting you agree to be contacted by one licensed advisor.