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).
Reviewed by Jason Burns, Editor & Steward · Last verified 2026-07-19
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).
Sources
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Phone consultations only — 1-866-254-9580. Private Health Insurance Direct Questions is an educational question directory for full-price, off-exchange private health insurance buyers. It is not medical, legal, tax, or benefits advice.
Source: full plain-language answer at Private Health Insurance Direct Answers. Licensed under Citation License 1.0 (terms).