Coverage
Coverage after COBRA: your alternatives when it runs out
COBRA lets you keep the exact group plan from a job you left, with the same network and doctors, for a limited time. The trade is the price: you now pay the full premium your employer used to share, plus a small administrative charge, and the coverage runs out, often after about 18 months. So COBRA works best as a stopgap while you arrange what comes next. The real question is what you move to before it ends, and that depends on what you are doing now, whether you took another job or now work for yourself.
This page explains what COBRA costs, when it ends, and the routes open to you afterward, including the group-plan route if you are now self-employed. It makes no tax claims. To see the numbers on your own 2026 situation, the calculator runs them.
No fee and no contact for the first result.
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What COBRA actually is, and what it costs
COBRA is the right to continue your former employer's group plan for a while after the job ends. Its strength is continuity: you keep the same plan, the same network, and the same doctors with no gap and no new underwriting. For someone mid-treatment or attached to their providers, that is worth a lot for a few months.
The cost is the catch. On COBRA you pay the entire premium, the part you paid plus the part your employer quietly covered, plus an administrative charge of a few percent. That is why the bill so often comes as a shock. And it is temporary, generally lasting up to about 18 months (U.S. Department of Labor, 2026). Treat it as paid time to line up what comes next.
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Your alternatives when COBRA ends or gets too expensive
You usually have four routes, and the best one depends on your situation:
- A new employer's plan. If you took a job with coverage, this is normally the simplest and lowest-cost move. Use COBRA only to bridge any waiting period.
- A spouse's group plan. Losing other coverage is typically a qualifying event that lets you join a spouse's plan outside open enrollment. Often the lowest-cost route, so check it first.
- The individual market. You buy your own plan, rated by age and area. Losing job-based coverage opens a special window to enroll. A solid answer for many, especially if you are not running a business.
- A group plan through a PEO. If you are now self-employed or running a business, even a business of one, you may be able to join an existing large group instead of buying alone. That puts you in group pricing with a National Tier 1 PPO, top-tier dental and vision, and a retirement plan, with the back office handled through one structure.
We are not the plan provider. A separate, licensed provider runs the plan. We run the math and connect you.
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If you left to run your own business
This is the case people miss. If your last job ended because you went out on your own, you do not have to choose between expensive COBRA and the individual market. As a business owner, even a solo one, you may be able to join a large group through a PEO and get the kind of plan a big employer offers.
Whether it beats COBRA or an individual plan depends on your profit, what you would pay on your own, and your state. That is the case for running your own number instead of guessing. The calculator models your options side by side and tells you when the simpler route wins. See whether a PEO is a fit, or see what a group plan includes.
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How we calculate this, and our sources
The COBRA cost and duration described here, the full premium plus an administrative charge, lasting generally up to about 18 months, follow current U.S. Department of Labor guidance on continuation coverage (U.S. Department of Labor, 2026). The plan details come from our PEO partner's current group offering. Your own result comes from the figures you enter, and the full report shows every line for your CPA to check.
This page reflects 2026 and is reviewed quarterly. See our full method.
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Frequently asked questions
Is there a cheaper alternative to COBRA?
Often, yes. A new employer's plan or a spouse's plan is usually cheaper, and the individual market may be too, since you can enroll there when you lose job-based coverage. If you now run a business, a group plan through a PEO can also beat COBRA. The calculator compares them on your figures.
How long does COBRA last?
Generally up to about 18 months, with longer periods in some situations (U.S. Department of Labor, 2026). Because you pay the full premium plus an administrative charge during that time, most people use it as a bridge while they line up something more affordable.
Can I get a group plan if I am self-employed after leaving my job?
You may be able to. As a business owner, even a solo one, you can look at joining a large group through a PEO instead of buying coverage on your own. Whether it wins depends on your numbers, which the calculator works out.
Does losing COBRA let me enroll in a new plan?
Losing coverage, including reaching the end of COBRA, generally opens a special enrollment window in the individual market and often lets you join a spouse's plan outside open enrollment. Timing matters, so plan the move before COBRA ends.
Does USA OPS sell coverage?
No. We run the analysis and connect qualified owners with our PEO partner, who provides the group plan and handles enrollment and service. We run the math and make the connection.
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