COBRA alternatives for the self-employed
COBRA lets you keep your old employer plan for up to 18 months — but you pay the full premium plus a 2% admin fee. For most people going self-employed, there's a cheaper option.
Why COBRA usually isn't worth it
The average COBRA premium runs $600–$900/month for a single person and $1,800+ for a family. That's the full cost your employer was covering on your behalf — without the employer subsidy. A comparable ACA marketplace plan with subsidies usually costs a fraction of that.
Your better options
Losing employer coverage is a qualifying life event, so you have 60 days to enroll in a marketplace plan outside open enrollment.
- ACA marketplace plan with subsidies — almost always cheaper than COBRA if your projected self-employment income qualifies you for a tax credit.
- Private off-marketplace plan — same major Texas carriers, no subsidies, year-round enrollment.
- Spouse's employer plan — losing your job is a special enrollment trigger on their plan too.
- Short-term medical — a 1–3 month bridge while you finalize a permanent plan.
When COBRA actually makes sense
There are a few cases where COBRA wins: you're mid-treatment with a specific doctor and switching networks would disrupt care; you've already hit your deductible for the year and want to keep that progress; or you only need a few weeks of coverage before a new employer plan kicks in.
Don't miss the 60-day clock
Once your employer coverage ends, you have 60 days to enroll in a marketplace plan with a Special Enrollment Period. Miss that window and you're locked out of marketplace plans until the next open enrollment — though private year-round plans remain available.
Talk to a licensed agent
No call centers, no chatbots — just real, no-cost help finding a plan that fits.