Is COBRA Coverage Worth It After Leaving a Job?

If you’ve recently left a job, either by choice or due to unforeseen circumstances, you may be wondering how to keep your health insurance active. One of the first options many people hear about is COBRA coverage. But the real question is: is COBRA worth it, or is there a better way to protect your family’s health?

For residents of Texas—especially those in Houston and surrounding areas—private PPO health insurance plans are often a smarter, more flexible alternative. In this article, we’ll break down what COBRA actually offers, what its limitations are, and why a personalized private plan might make more sense for you and your family.

Before we dive in, be sure to check out www.buddhealthins.com for more free tips and guidance or follow us on Facebook at www.facebook.com/buddhealthadvisors to stay updated.

What Is COBRA Coverage?

COBRA, or the Consolidated Omnibus Budget Reconciliation Act, gives you the legal right to keep the same group health insurance plan you had through your employer after you leave your job. It sounds like a win, but there’s a catch—and it’s a big one: you have to pay the full premium cost yourself, including what your employer used to contribute, plus a 2% administrative fee.

That sticker shock leads many people to explore other options—especially when they realize that there may be private health plans that offer lower costs, better benefits, and more flexibility.

Key Points to Understand About COBRA

You're paying the full cost, and then some: When you're on COBRA, your employer no longer helps cover your monthly premium. That means your health insurance cost could double or even triple overnight. Many families are shocked by how expensive it becomes, especially when they were used to having a portion covered by their employer.

Coverage is the same—but the needs may have changed: Even though you're keeping the same plan, your circumstances may have shifted. If you're no longer working or your income is uncertain, paying a high monthly premium for the same plan might not be the best use of your money. It's important to consider how your healthcare needs and budget have evolved.

COBRA is temporary: COBRA typically lasts up to 18 months. It’s designed as a short-term bridge, not a long-term solution. This creates stress and uncertainty, especially for families who want something more stable and predictable moving forward.

Why Private PPO Plans Are Often a Better Fit

Private health insurance options, especially PPO plans, offer a level of customization and accessibility that COBRA just can’t match. Here's why many families in Texas and the Houston area are making the switch:

Custom coverage that matches your actual needs: With private PPO plans, you're not locked into a generic group plan anymore. Instead, you can customize your coverage based on what your family actually needs. Whether it's more preventive care, specialist access, or prescription benefits, your plan can reflect your current situation—not your old one.

Lower monthly costs in many cases: Believe it or not, a medically underwritten private PPO plan often comes with a lower monthly premium than COBRA. When you qualify based on your health and lifestyle, you can tap into a better price point without sacrificing the benefits you care about most.

Year-round enrollment options: One of the best parts? You don’t have to wait for open enrollment. Private PPO plans allow you to apply and enroll year-round, making them an ideal solution for anyone who just left a job and needs coverage immediately.

Nationwide provider access: PPO plans typically come with nationwide networks, giving you the freedom to choose your doctors, hospitals, and specialists. This is especially valuable if you or your family members travel frequently or want access to top-tier care that may be out-of-network with your old employer plan.

We cover all of these topics in much greater detail in our online course. If you'd like to take a moment to learn a little more about what's included in our course, simply click the button below. Or keep reading and learn a little something along the way!

How to Decide If COBRA Is Worth It for You

If you're healthy, don’t require frequent medical care, or are trying to minimize your expenses after leaving a job, COBRA might not be your best option. Instead, consider exploring private PPO plans that offer the following:

• Lower overall cost with no sacrifice in quality. You may end up paying significantly less each month, and still receive access to better or equivalent care. This allows you to prioritize your family’s financial well-being while staying protected.

• Plans designed around your lifestyle: If you’re transitioning to self-employment or freelancing, or you're in between jobs, a flexible health insurance policy that’s designed for independence can serve you better. You're not tied to a workplace plan anymore—so why keep paying for one?

• Longer-term stability: While COBRA ends after 18 months, private health insurance continues for as long as you need it. There’s peace of mind in knowing you won’t be scrambling to find new coverage down the line.

Let’s Make the Smart Choice Easier

Choosing health insurance after a job change doesn’t have to be overwhelming. With the help of a local advisor who knows the ins and outs of the Texas market, you can explore personalized options that actually make sense for your life today—not the one you left behind.

At Budd Health Advisors, we help families and individuals across the Greater Houston area find affordable, reliable coverage every day. If you're comparing COBRA vs. private PPO plans, let's have a conversation. We'll help you find the right fit—without all the guesswork.

Ready to get the coverage that fits your life now? Book your free consultation today at www.buddhealthins.com.

Or, if you would like to hit the ground running and take a strong step in building your coverage, you can book your discovery call with Budd Health Advisors today!

And don’t forget to subscribe to our newsletter for more health insurance tips and updates—and follow us on Facebook at www.facebook.com/buddhealthadvisors for even more insights.

Let's Go!