Comparison guide · 2026
Fixed Benefit Plan vs. COBRA
If you just left a W-2 job to buy a franchise or go independent, COBRA is usually the most expensive option on the table. Here's how a fixed-benefit (indemnity) plan compares — often up to 75% less per month.
| Feature | COBRA continuation | Fixed-Benefit Plan (ours) |
|---|---|---|
| Monthly premium | Full cost + 2% admin fee | Up to 75% less |
| How benefits are paid | Percentage after deductible | Set dollar amounts, first dollar |
| Deductible (outpatient) | Inherits old employer plan | $0 |
| Network | Limited to former plan's network | No network — see any doctor |
| How long it lasts | Up to 18 months | Guaranteed renewable to age 65 |
| Telemedicine | Per former plan | Included free |
| Maternity coverage | Usually included | Not included |
| Best for | Mid-treatment for serious condition | Healthy self-employed owners, age 20s–40s |
The verdict
Best for most newly self-employed owners: Fixed-Benefit Plan
Unless you're actively in treatment and need to preserve your exact plan and network, COBRA's roughly 18-month, full-cost premium is hard to justify. A fixed-benefit plan delivers first-dollar outpatient coverage, full provider freedom, and locks in coverage to age 65 at a fraction of the price.
Frequently asked questions
Is a fixed-benefit plan cheaper than COBRA?
Almost always. COBRA charges the full unsubsidized premium plus a 2% admin fee. A fixed-benefit plan typically costs 50%–75% less per month for healthy owners.
Do I lose my old doctors if I drop COBRA for a fixed-benefit plan?
No. Fixed-benefit plans have no network restrictions — you can see any provider in the country and the plan pays the same benefit amount either way.
Is a fixed-benefit plan the same as COBRA coverage?
No. COBRA continues your former employer's major-medical plan with percentage-of-cost benefits. A fixed-benefit plan pays set dollar amounts for specific services starting from the first dollar.
Who should still pick COBRA?
Someone mid-treatment for a serious condition where keeping the same plan, network, and accumulated deductible matters more than monthly cost. For everyone else, a private alternative is almost always better.
Can I enroll in a fixed-benefit plan any time of year?
Yes. There's no Open Enrollment window. Coverage typically starts the 1st of the following month.
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