COBRA & Under-65 Health Insurance Guidance
Reviewed by Prodest Insurance Group, a licensed insurance agency (NPN 19515569) · Updated 27 October 2026.
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| Single coverage | Family coverage | |
|---|---|---|
| Full annual premium | $9,325 | $26,993 |
| What the worker paid | $1,440 | $6,850 |
| What the employer paid | $7,885 | $20,143 |
| Roughly per month while employed | About $120 | About $571 |
| Roughly per month on COBRA at 102% | About $793 | About $2,294 |
| State | Single, per month | Family, per month |
|---|---|---|
| U.S. average | $767 | $2,234 |
| Alabama | $694 | $2,002 |
| Alaska | $904 | $2,561 |
| Arizona | $657 | $1,967 |
| Arkansas | $663 | $1,951 |
| California | $779 | $2,300 |
| Colorado | $749 | $2,130 |
| Connecticut | $849 | $2,440 |
| Delaware | $804 | $2,176 |
| District of Columbia | $830 | $2,497 |
| Florida | $758 | $2,159 |
| Georgia | $757 | $2,247 |
| Hawaii | $704 | $2,006 |
| Idaho | $745 | $2,206 |
| Illinois | $827 | $2,401 |
| Indiana | $710 | $1,997 |
| Iowa | $733 | $2,140 |
| Kansas | $736 | $2,167 |
| Kentucky | $760 | $2,084 |
| Louisiana | $749 | $2,180 |
| Maine | $833 | $2,219 |
| Maryland | $745 | $2,101 |
| Massachusetts | $887 | $2,518 |
| Michigan | $700 | $2,023 |
| Minnesota | $730 | $2,205 |
| Mississippi | $647 | $1,864 |
| Missouri | $687 | $2,169 |
| Montana | $756 | $1,869 |
| Nebraska | $757 | $2,281 |
| Nevada | $698 | $1,961 |
| New Hampshire | $808 | $2,394 |
| New Jersey | $828 | $2,522 |
| New Mexico | $803 | $2,251 |
| New York | $928 | $2,529 |
| North Carolina | $732 | $2,151 |
| North Dakota | $792 | $2,117 |
| Ohio | $748 | $2,096 |
| Oklahoma | $691 | $2,081 |
| Oregon | $784 | $2,310 |
| Pennsylvania | $801 | $2,263 |
| Rhode Island | $798 | $2,326 |
| South Carolina | $727 | $2,129 |
| South Dakota | $764 | $2,219 |
| Tennessee | $737 | $2,135 |
| Texas | $726 | $2,130 |
| Utah | $718 | $2,135 |
| Vermont | $850 | $2,163 |
| Virginia | $762 | $2,317 |
| Washington | $741 | $2,348 |
| West Virginia | $755 | $2,218 |
| Wisconsin | $812 | $2,321 |
| Wyoming | $765 | $2,302 |
Estimated monthly COBRA premium = average total annual employer premium × 1.02 ÷ 12. Source: Agency for Healthcare Research and Quality, Medical Expenditure Panel Survey Insurance Component, 2025, private-sector employers. This is a different survey from the Kaiser Family Foundation figures above, which is why the U.S. row differs slightly from $793. Linked states have a guide to their own continuation rules.
The extra 2 percent on top of the full premium is the COBRA administration fee. Federal law lets the plan charge it to cover the cost of running continuation coverage, and it is already included in the 102 percent cap. If the full monthly premium is $750, the administration fee is $15 and the most the plan can charge is $765.
There is no separate fee on top of that. Whether your former employer bills you directly or uses a third-party COBRA administrator, the total you are charged cannot go above 102 percent of the premium, except in the situations below.
| Situation | Maximum charge | Notes |
|---|---|---|
| Standard COBRA continuation | 102 percent | The full premium plus a two percent administrative fee |
| Disability extension | 150 percent | Applies during the 11-month extension where Social Security has determined a disability |
| State continuation | Varies by state | Some states allow more than the federal cap. Florida permits up to 115 percent |
Up to 102 percent of what your employer plan costs in full: the entire premium plus a two percent administrative fee. Using the Kaiser Family Foundation's 2025 national averages, that works out to roughly $793 a month for single coverage and $2,294 for family coverage. Your actual figure depends on your former employer's plan and appears on your COBRA election notice.
While you were employed, your employer paid most of the premium, on average about $7,885 a year for single coverage and $20,143 for family. Under COBRA you pay all of it. Nothing has been added to the price; you are seeing the whole cost for the first time.
The arithmetic is simple enough to do without one: take the full monthly premium for your plan and multiply by 1.02. The only reliable number, though, is the one on the COBRA election notice your plan administrator sends after your coverage ends. National averages show the scale, not your cost.
Yes, in two situations. During the 11-month disability extension, where Social Security has determined a disability, the plan may charge up to 150 percent. And some state continuation laws allow more than the federal cap. Florida permits up to 115 percent.
Obamacare is the common name for ACA Marketplace coverage. Often it is not. Losing job-based coverage opens a 60-day Special Enrollment Period on the Marketplace, and premium tax credits, available to households below 400 percent of the federal poverty level, can reduce that cost substantially. COBRA itself does not qualify for those credits. COBRA can still be the better value if you are mid-treatment or have already met a substantial deductible, since a new plan resets that to zero.
Yes. If you elect within the election window, coverage is retroactive to the day your old plan ended, so there is no gap.
You can drop it at any time, but voluntarily dropping COBRA does not reopen the Marketplace Special Enrollment Period. Letting COBRA run out completely does. That is why comparing before you elect matters.
Several routes may bring the cost down: a Marketplace plan with premium tax credits, a severance agreement in which the employer pays part of the premium, joining a spouse's or parent's employer plan (that window can be as short as 30 days), Medicaid or CHIP if household income has dropped (no enrollment window applies), or a lower metal tier if you mainly need protection against a serious event.
On the Kaiser Family Foundation's 2025 national averages, COBRA family coverage is roughly $2,294 a month, and state averages run from about $1,864 to $2,561. Most plans price by coverage tier (employee only, employee plus spouse, employee plus children, family) rather than by head count, so a family of three and a family of five often pay the same family rate. Your election notice lists the price of each tier.
See the state table on this page. Estimated single COBRA premiums run from about $647 a month in Mississippi to about $928 in New York, based on 2025 federal survey data on employer premiums. Your plan's actual rate can be higher or lower.
Your COBRA election notice lists the official monthly premium for each coverage tier. Before it arrives, you can estimate from your W-2: box 12, code DD shows the annual cost of your employer health coverage. Divide it by 12 and multiply by 1.02. Your HR team or benefits portal can also give you the total monthly premium for your tier.
Often yes if you have met or are close to meeting this year's deductible, are in the middle of treatment, want to keep specific doctors, or only need coverage for a short gap before a new job's plan starts. Often no if your household income qualifies you for premium tax credits on the Marketplace, where a subsidized plan can cost far less. Compare both numbers before your 60-day election window closes.
It is the 2 percent the plan may add to the full premium to cover the cost of administering COBRA. It is built into the federal cap of 102 percent, so on a $750 monthly premium the fee is $15 and the most you can be charged is $765. During the 11-month disability extension the cap rises to 150 percent.
Not beyond the federal limit. Whether your former employer or a third-party administrator sends the bill, the total COBRA premium cannot exceed 102 percent of the plan cost, or 150 percent during a disability extension. Some state continuation laws set different limits, such as 105 percent in Arizona and 115 percent in Florida.
Prefer to talk? Call (888) 918-4516 · Monday to Friday, 10:00 a.m. to 5:30 p.m. Eastern
This website provides educational information about health insurance and is a solicitation for insurance. It is a non-government website operated by Prodest Insurance Group, a health insurance agency that presents health plans, which may include Affordable Care Act (ACA) plans, private health insurance, short-term medical insurance, or supplemental insurance based on the consumer's selection. Qualified ACA plans must meet or exceed the essential benefit requirements of the Affordable Care Act; non-ACA plans are not required to provide all of the essential benefit requirements contained in the Affordable Care Act. Pre-existing condition provisions, benefit availability, limitations and exclusions vary by plan type and state. You should review all plan details and product brochures before purchase. To qualify for ACA health insurance coverage outside of the open enrollment period, you must meet special enrollment requirements.
*Eligibility for Affordable Care Act (ACA) Advance Premium Tax Credit (APTC) and cost-sharing reductions is based on annual federal income thresholds, household size, and plan availability within the applicable service area. Premium rates, plan availability, and subsidy amounts vary by state and marketplace. Final eligibility and premium obligations are determined by the Health Insurance Marketplace under Internal Revenue Code Section 36B and applicable federal regulations.
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