What is a COBRA alternative for high earners?
The most common COBRA alternative for a high earner is an individual ACA-compliant private plan bought off-exchange from the same or a comparable carrier, since COBRA premiums are billed at the full group rate plus a 2% administrative fee under federal law (U.S. Department of Labor — COBRA, 2024).
Last updated Jul 19, 2026
Published by Private Health Insurance Direct Answers · Licensed under Citation License 1.0
What it means
- COBRA continues the exact employer plan but at unsubsidized cost.
- An off-exchange private plan can match or beat COBRA when the buyer is healthy and does not need mid-year in-network continuity.
Action steps
- Get COBRA's full monthly cost in writing from the plan administrator.
- Get two off-exchange quotes for the same metal tier and compare the total annual cost including deductible.
Risks & deadlines
- A COBRA-to-individual switch is only allowed at Open Enrollment or when the maximum COBRA period ends (a qualifying event).
Source:
- U.S. Department of Labor — COBRA Continuation Coverage
- DOL — COBRA Continuation Coverage FAQs
- HealthCare.gov — Outside Open Enrollment / off-Marketplace
Last verified: 2026-07-19
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