When you leave a job, COBRA lets you keep your employer's health plan — but you take on the entire premium, including the portion your employer used to pay. For many people that's the moment health insurance suddenly costs over $1,000 a month. Before you renew, it's worth understanding exactly how COBRA compares to a private PPO plan, because the difference can be thousands of dollars a year.
How COBRA pricing actually works
COBRA isn't a discount or subsidy program. You pay 100% of the plan's total cost — both your old share and your employer's share — plus up to a 2% administrative fee. That's why premiums that felt affordable through work can more than double once you're on COBRA.
COBRA is also temporary. In most cases it lasts up to 18 months, after which you'll need different coverage anyway. So even if you stay on COBRA, you're only postponing the decision.
What you keep with COBRA
- The exact same plan, network, and benefits you had at work
- Your progress toward the year's deductible and out-of-pocket maximum
- Continuity if you're mid-treatment with a specific provider
Where a private PPO can win
A private PPO is coverage you own — not tied to a former employer. For people who qualify, premiums are often meaningfully lower than COBRA while still offering a broad, see-any-doctor network.
- Premiums that may be significantly lower than COBRA
- A broad nationwide PPO network with no referrals
- Year-round enrollment, so you're not racing a deadline
- Coverage that continues as long as you want it
A simple cost example
Imagine COBRA would cost you $1,040 a month to continue your old plan. A comparable private PPO might run $460–$550 a month for someone who qualifies. Over a year, that gap can add up to roughly $6,000 in savings — money that stays in your pocket for the same kind of coverage. Figures vary by age, location, and health, so a personalized comparison is the only way to know your real numbers.
When COBRA still makes sense
COBRA isn't always the wrong choice. If you've already met your deductible for the year, you're in the middle of treatment, or you need to keep a very specific provider network, staying on COBRA can be the safer move. The point isn't that one option always wins — it's that you should compare before deciding.
How to compare the two quickly
Start by writing down your COBRA monthly cost and your must-have doctors. Then have a licensed advisor pull comparable private PPO options for your ZIP code. In a few minutes you'll see the premium difference, whether your doctors are in-network, and how the deductibles compare — all at no cost.
The bottom line
Don't auto-renew COBRA without checking the alternative. A licensed advisor can compare a private PPO to your COBRA cost for free, so you can make the call with real numbers in front of you instead of guessing.
