Private PPO vs. COBRA Coverage
COBRA lets you keep your former employer's health plan after you leave — exactly the same doctors and benefits. The catch is the price: you now pay the full premium plus an administrative fee, without your employer's contribution. For many people that's a shock. Here's how COBRA stacks up against a private PPO.
The alternative
COBRA continuation
- Keep the exact same plan, doctors and deductible progress
- No health questions — continuation is guaranteed
- You pay up to 102% of the full premium, including what your employer used to cover
- Usually lasts 18 months, then you need a new plan anyway
- 60-day election window, with retroactive coverage
With Liberty Health Choice
Private PPO coverage
- Often far less than a full COBRA premium for healthy applicants
- Coverage isn't tied to your old employer's plan year
- Nationwide PPO networks — many of the same doctors may be in network
- No 18-month cutoff
- Medically underwritten — approval depends on health history
Side by side: COBRA vs. private PPO
- Monthly costCOBRAFull premium + 2% admin feePrivate PPOPriced to your own health profile
- Health questionsCOBRANonePrivate PPOYes — medically underwritten
- How long it lastsCOBRATypically 18 monthsPrivate PPORenewable, no fixed end
- Same doctorsCOBRAYes, identical planPrivate PPOOften — broad PPO networks
- Deductible progressCOBRACarries overPrivate PPOStarts fresh
- Family membersCOBRASame as employer planPrivate PPOChoose who to include
- Enrollment timingCOBRA60-day election windowPrivate PPOAny day of the year
Is COBRA ever the smarter choice?
Yes. If you're mid-treatment, you've already met most of your deductible, or someone on your plan has a serious condition, keeping COBRA for a few months can be worth the cost. An advisor can help you run that math honestly.
Can I use the COBRA election window as a safety net?
Many people do. COBRA elections are retroactive within the 60-day window, so you can apply for a private plan first and still have COBRA available if you need it. Ask your former employer's benefits administrator for the exact dates.
What about a marketplace plan instead?
Losing employer coverage is a qualifying life event, so you also get a Special Enrollment Period on the marketplace. If your income is lower after leaving the job, a subsidized marketplace plan may beat both COBRA and a private PPO.
Best for: COBRA
- • People in the middle of treatment
- • Anyone who has already met a large deductible
- • Households with serious health conditions
Best for: Private PPO
- • Healthy people facing a high COBRA bill
- • Freelancers and new business owners
- • Anyone who needs coverage beyond 18 months
The verdict
COBRA buys continuity at a premium price. If continuity matters for your health right now, keep it. If not, compare a private PPO before you sign the election form.
More comparisons
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