COBRA vs. Private Health Insurance

It usually comes down to cost and your doctors. COBRA keeps your exact employer plan at up to 102 percent of its full price. A private, off-exchange plan is new coverage bought directly from a carrier. It may cost less, but the network is new and the deductible resets. Neither qualifies for a premium tax credit.

Reviewed by Prodest Insurance Group, a licensed insurance agency (NPN 19515569) · Updated 23 September 2026 against current federal guidance.

Prefer to talk? Call (888) 918-4516 · Monday to Friday, 10:00 a.m. to 5:30 p.m. Eastern

Side by Side

	COBRA	Private (off-exchange)
What it is	Your former employer's group plan, continued	A new individual or family plan bought directly from a carrier or through a licensed agent
What you pay	Up to 102 percent of the full premium	The carrier's premium for the plan you choose
Premium tax credit	Not available	Not available
Your doctors	Unchanged. Same plan, same network	A new network. Check before enrolling
Deductible already met	Carries over within the plan year	Resets to zero
Pre-existing conditions	Covered as before	Cannot be excluded on ACA-compliant plans
How long it lasts	18 months for job loss or reduced hours; up to 36 months for other events	No COBRA-style end date on ACA-compliant major medical
Choice	None. You keep the plan you had	May include carriers and plan designs not sold on the Marketplace

Because neither option carries a tax credit, private coverage is most worth comparing when household income is above 400 percent of the federal poverty level. Below that, a Marketplace plan with a tax credit may cost less than either. Compare COBRA and Marketplace coverage →

Private Does Not Always Mean Comprehensive

COBRA is always your full employer plan. The phrase private health insurance, on the other hand, covers three quite different kinds of product. ACA-compliant off-exchange plans are full major medical coverage: they cover the ten essential health benefits and cannot exclude pre-existing conditions. Non-compliant products, such as short-term or fixed-indemnity coverage, are not required to cover essential health benefits and may exclude conditions you already have or cap what they pay. Minimum essential coverage (MEC) plans focus on preventive care and generally do not cover hospitalization or surgery.

A non-compliant plan can look cheaper than COBRA precisely because it covers less. Before comparing a private quote against your COBRA cost, confirm in writing whether it is ACA-compliant major medical. Private health insurance, explained →

Timing Matters More Than People Expect

Losing job-based coverage opens a 60-day Special Enrollment Period, and ACA-compliant private plans follow the same enrollment rules as the Marketplace. That window is the time to compare.

If you elect COBRA and later drop it because it costs too much, dropping it does not reopen that window. You would generally wait for Open Enrollment. Letting COBRA run out completely is different, and does qualify you for a new window. Compare before you elect, not after.

Which Tends to Fit

COBRA tends to fit when you are in the middle of treatment, when you have already met much of this year's deductible, when you have specialists you are not willing to change, or when you only need a short bridge before other coverage starts.

A private plan tends to fit when your income is above 400 percent of the federal poverty level so no tax credit applies, when a carrier you want does not sell on the exchange in your county, or when a private plan's network covers your doctors at a lower cost than COBRA.

How to Compare Them

Get your COBRA cost from your election notice. That is the only reliable figure.
Ask whether each private quote is ACA-compliant major medical. Get the answer in writing.
Check your doctors and prescriptions against each private plan's network and formulary.
Weigh the deductible you have already met. It carries over on COBRA and resets on a new plan.
Check whether a Marketplace tax credit applies before paying full price for either.
Decide within your 60 days, and speak with a licensed agent if the deadline is close. There is no cost.

What to do when you lose coverage, step by step →

Want both numbers side by side?

A licensed agent can put your COBRA cost next to private and Marketplace quotes in a few minutes, at no cost.

This page is general information, not advice about your specific situation. Your plan documents and the Marketplace determine what applies to you. A licensed agent can review your circumstances with you.

Common Questions

Is COBRA cheaper than private health insurance?

Not necessarily. COBRA is your employer plan at up to 102 percent of its full cost. A private plan may cost less, so compare networks, deductibles, and out-of-pocket maximums, not just premiums.

Can I use a premium tax credit on COBRA or a private plan?

No. Premium tax credits apply only to Marketplace plans.

Will I keep my doctors on a private plan?

Not necessarily. A private plan has its own network, so check each of your doctors before enrolling. COBRA keeps your current network.

Can a private plan exclude my pre-existing condition?

ACA-compliant plans cannot. Non-compliant products, such as short-term plans, may.

When can I buy private health insurance after losing my job?

ACA-compliant private plans follow the same enrollment rules as the Marketplace: the 60-day window after losing job-based coverage, or annual Open Enrollment.

Can I switch from COBRA to a private plan later?

Dropping COBRA voluntarily does not open an enrollment window, so you would generally wait for Open Enrollment. Letting COBRA run out completely does open a new window.

Does my deductible carry over to a private plan?

No. A new plan starts the deductible again. On COBRA it carries over within the same plan year.

Sources

The information on this page is drawn from the following federal sources. Your own plan documents govern your specific situation.

U.S. Department of Labor, FAQs on COBRA Continuation Health Coverage for Workers
U.S. Department of Labor, Affordable Care Act
HealthCare.gov, Special Enrollment Period (glossary)

Price both before you elect

We are licensed to write private and Marketplace plans, so a licensed agent can put your COBRA cost next to real quotes, confirm your doctors are covered, and enroll you. No cost, no obligation.

Prefer to talk? Call (888) 918-4516 · Monday to Friday, 10:00 a.m. to 5:30 p.m. Eastern

This website provides educational information about health insurance and is a solicitation for insurance. It is a non-government website operated by Prodest Insurance Group, a health insurance agency that presents health plans, which may include Affordable Care Act (ACA) plans, private health insurance, short-term medical insurance, or supplemental insurance based on the consumer's selection. Qualified ACA plans must meet or exceed the essential benefit requirements of the Affordable Care Act; non-ACA plans are not required to provide all of the essential benefit requirements contained in the Affordable Care Act. Pre-existing condition provisions, benefit availability, limitations and exclusions vary by plan type and state. You should review all plan details and product brochures before purchase. To qualify for ACA health insurance coverage outside of the open enrollment period, you must meet special enrollment requirements.

*Eligibility for Affordable Care Act (ACA) Advance Premium Tax Credit (APTC) and cost-sharing reductions is based on annual federal income thresholds, household size, and plan availability within the applicable service area. Premium rates, plan availability, and subsidy amounts vary by state and marketplace. Final eligibility and premium obligations are determined by the Health Insurance Marketplace under Internal Revenue Code Section 36B and applicable federal regulations.

COBRA vs. Private Health Insurance

Side by Side

Private Does Not Always Mean Comprehensive

Timing Matters More Than People Expect

Which Tends to Fit

How to Compare Them

Want both numbers side by side?

Common Questions

Is COBRA cheaper than private health insurance?

Can I use a premium tax credit on COBRA or a private plan?

Will I keep my doctors on a private plan?

Can a private plan exclude my pre-existing condition?

When can I buy private health insurance after losing my job?

Can I switch from COBRA to a private plan later?

Does my deductible carry over to a private plan?

Read Next

Sources

Price both before you elect