COBRA (Consolidated Omnibus Budget Reconciliation Act) allows individuals to continue their employer-sponsored health insurance after leaving a job. However, this comes at a higher cost, as the individual must pay the full premium plus a 2% administrative fee.
Average Costs:
- Individual Coverage: Approximately $400 to $700 per month.
- Family Coverage: Can exceed $1,500 per month.
These costs reflect the total premium without employer contributions, making COBRA a potentially expensive option.
Freelancer Health Insurance Plans
Freelancers have access to various health insurance options, including plans available through the Health Insurance Marketplace. These plans often come with subsidies based on income, making them more affordable.
Average Costs:
- Without Subsidies: Around $500 per month.
- With Subsidies: Can be as low as $200 per month, depending on income and location.
Providers like Blue Cross Blue Shield and Ambetter offer competitive rates and comprehensive coverage options for self-employed individuals.
Key Differences
| Feature | COBRA Insurance | Freelancer Health Plans |
| Cost | High premiums without subsidies | Potentially lower with income-based subsidies |
| Coverage Continuity | Same as previous employer plan | New plan selection required |
| Duration | Limited to 18-36 months | Ongoing, as long as premiums are paid |
| Provider Network | Same as employer’s plan | Varies by chosen plan |
| Eligibility | Must have been enrolled in employer’s plan | Open to all, with income-based subsidies |
While COBRA offers continuity of coverage, it often comes at a higher cost without the benefit of subsidies. Freelancer health plans, particularly those available through the Health Insurance Marketplace, can provide more affordable options with the flexibility to choose coverage that fits your needs and budget. Evaluating your specific circumstances, including income and healthcare requirements, will guide you to the most cost-effective choice.