COBRA vs. Individual Coverage: A Straightforward Comparison
COBRA is a bridge, not a destination. Here's how the two options stack up so you can decide with confidence.
What COBRA Does
COBRA lets you keep your former employer's health coverage for up to 18 months (or 36 months in some cases). You pay the full premium yourself — no employer contribution.
The Upside
- Same plan, same doctors, same benefits — no learning curve
- Time to research your options without a gap in coverage
The Downside
- Often more expensive than an comparable individual plan
- Temporary by design — it ends, and then you're starting from zero
- Limited to the plan you had — no flexibility to switch carriers
Individual Coverage
Individual plans are portable, renewable, and can be tailored to your actual needs as a 1099 worker. They don't expire when you change jobs.
The Bottom Line
COBRA buys you time. Individual coverage buys you a strategy. For most self-employed professionals, the right answer is both — COBRA for the immediate gap, and an individual plan you've researched thoughtfully.
This is general information and does not constitute plan recommendations. Coverage availability and eligibility vary by state and applicant.
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