How Much Does COBRA Cost?

COBRA costs whatever your employer plan costs, plus up to a two percent administrative fee. The figure that shocks people is not the plan getting more expensive. It is finding out what it cost all along.

Reviewed and updated 1 August 2026.

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The Arithmetic

While you were employed, your employer paid most of your premium and you paid the rest through your paycheck. Under COBRA you pay all of it. The law allows the plan to charge up to 102 percent of the full cost: the whole premium, plus two percent for administration.
The national averages give a sense of the scale. According to the Kaiser Family Foundation’s 2025 Employer Health Benefits Survey, the average annual premium for employer-sponsored coverage was $9,325 for single coverage and $26,993 for family coverage. Workers contributed an average of $1,440 and $6,850 of that respectively.
Single coverageFamily 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 employedAbout $120About $571
Roughly per month on COBRA at 102%About $793About $2,294

These are national averages, not your number

Your actual cost depends on your former employer’s plan, and it can sit well above or below these figures. The only number that matters is the one on your COBRA election notice, which your plan administrator sends after your coverage ends.
The averages are useful for one thing: understanding why the figure on that notice is so much larger than what came out of your paycheck. Nothing has been added. You are simply seeing the whole cost for the first time.

When COBRA Can Cost More Than 102 Percent

SituationMaximum chargeNotes
Standard COBRA continuation102 percentThe full premium plus a two percent administrative fee
Disability extension150 percentApplies during the 11-month extension where Social Security has determined a disability
State continuationVaries by stateSome states allow more than the federal cap. Florida permits up to 115 percent
How the rules differ by state →

What You Are Paying For

It is worth being even-handed about this, because COBRA is expensive for a reason and sometimes the reason is worth paying for.
• The same plan. Same network, same doctors, same drug list, same prior authorisations. Nothing restarts.
• The deductible you have already paid. Staying on the plan keeps that progress. A new plan resets it to zero, which matters most late in the plan year.
• No gap. Coverage is retroactive to the day your old plan ended, provided you elect within the window.
• No underwriting, no waiting. Nothing about your health can change the price or the terms.
If you are mid-treatment, or partway through a plan year with a substantial deductible met, the arithmetic can favour COBRA even at full price.

Ways the Cost Can Come Down

A Marketplace plan instead. Premium tax credits are available to households below 400 percent of the federal poverty level and can reduce the monthly cost substantially. COBRA itself does not qualify for those credits.
A severance agreement. Some employers pay part of COBRA premiums for a period. It is worth asking, and worth getting in writing.
A spouse or parent’s plan. Losing your own coverage usually opens a window to join a family member’s employer plan, and that window can be as short as 30 days.
Medicaid or CHIP. If your income dropped with the job, your household may now qualify. There is no enrollment window for these programmes.
A lower metal tier. If you are healthy and mainly need protection against a serious event, a Bronze or Silver plan costs less monthly than continuing a rich employer plan.

Compare before you elect, not after

Losing job-based coverage opens a 60-day Special Enrollment Period on the Marketplace. If you elect COBRA and later find it unaffordable, voluntarily dropping it does not reopen that window. Letting COBRA run out completely does.

Read Next

Compare COBRA and Marketplace side by side →
How ACA Marketplace pricing works →
Private and off-exchange coverage →
What to do when you lose coverage →
How COBRA works, in full →

Sources

Premium averages are from the Kaiser Family Foundation’s annual employer survey and are national figures for 2025. Continuation rules are drawn from federal and state sources.

Find out what your options actually cost

A licensed agent can take the figure from your COBRA election notice and put it beside what a Marketplace or private plan would cost for your household. No charge, no obligation.
Get My Options

Prefer to talk? Call (888) 918-4516 · Monday to Friday, 10:00 a.m. to 5:30 p.m. Eastern

Premium figures on this page are national survey averages and are not a quote. Your cost depends on your former employer’s plan and appears on your COBRA election notice. Plan availability, pricing, and subsidy eligibility vary by location, household size, and income. This page is general information, not advice about your specific situation.

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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