Private Health Insurance Direct Answers

Private health insurance for a 1099 vs COBRA — which makes sense?

For a 1099 contractor leaving a W-2 job, an individual ACA-compliant private plan is often less expensive than COBRA because COBRA is charged at the full group rate plus a 2% administrative fee, while a private off-exchange plan is priced on your age and rating area (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 keeps the exact employer plan and network in-force during a transition.
  • A private off-exchange plan resets the deductible on a new plan year and may change the network.

Action steps

  1. Ask the plan administrator for the exact COBRA premium in writing.
  2. Get a private quote for the same metal tier and compare annualized cost including expected deductible spend.

Risks & deadlines

  • Loss of employer coverage triggers a 60-day Special Enrollment Period for individual coverage.

Source:

Last verified: 2026-07-19

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