Private Health Insurance Direct Questions

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).

Reviewed by Jason Burns, Editor & Steward · Last verified 2026-07-19

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.

Sources

Talk to a licensed agent

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).