Private PPO vs. COBRA Coverage
COBRA lets you keep your old employer plan — but you pay the full premium plus an admin fee, which is often expensive. For many people leaving a job, a private PPO plan is a more affordable way to stay covered.
The short answer
Keep COBRA if you're mid-treatment and need to preserve your exact plan and network short-term. Otherwise, a private PPO usually costs far less for similar coverage — and can start right away.
| Feature | COBRA | Private PPO (Freedom) |
|---|---|---|
| Typical monthly cost | $650–$1,200+ (full premium) | Frequently $250–$450 |
| How long it lasts | Usually up to 18 months | Ongoing, month-to-month |
| Keeps your exact plan | Yes | New plan, broad PPO network |
| When it starts | Retroactive to coverage loss | Right away |
| Flexibility | Locked to former employer plan | Choose the plan that fits |
| Best for | Mid-treatment continuity | Affordable ongoing coverage |
Why is COBRA so expensive?
While employed, your employer pays most of your premium. With COBRA you pay 100% of it — plus up to a 2% administrative fee. That's why COBRA bills often come as a shock, frequently running well over $700 a month for an individual.
Will I have a coverage gap?
A private PPO plan can typically be put in place quickly, so you don't have to risk a gap. An advisor can help time your start date to line up with the end of your employer coverage.
When does COBRA actually make sense?
COBRA is worth the higher cost mainly if you're in the middle of treatment and need to keep the exact same doctors and plan for continuity. In most other cases, a private PPO offers similar protection for a lot less.
COBRA is better if…
- You're mid-treatment
- You must keep your exact plan
- You only need a few months of coverage
Private PPO (Freedom) is better if…
- You want to cut your premium
- You're between jobs longer-term
- You want to choose your own plan
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