🚀 Fast Facts: How much does COBRA cost?
- COBRA can cost up to 102% of your plan's full premium: the employer and employee shares plus a 2% fee
- Based on KFF's 2025 averages, that's about $793 a month for single coverage and $2,294 for family coverage
- You have 60 days to elect COBRA and at least 45 days after electing to pay the first premium
- HSA funds can pay COBRA premiums, according to IRS Publication 969
COBRA lets you keep your employer's health plan after you leave a job or lose eligibility, but you pay the whole premium yourself, plus up to a 2% administrative fee. Based on average employer premiums, that works out to roughly $790 a month for single coverage and about $2,290 a month for family coverage. Your exact cost is on your COBRA election notice.
This guide explains how COBRA premiums are calculated, how to estimate your own cost, how COBRA compares with other options, and the deadlines that affect what you pay.
COBRA insurance cost: how much does COBRA cost per month?
Under federal law, a plan can charge you up to 102% of the plan's full cost for COBRA coverage, according to the U.S. Department of Labor. That's 100% of the premium (the share your employer previously covered plus the share that came out of your paycheck) plus a 2% administrative fee.
The KFF 2025 Employer Health Benefits Survey puts average annual employer premiums at $9,325 for single coverage and $26,993 for family coverage. At 102%, that's:
Coverage | Average total premium | Estimated COBRA cost (102%) |
Single | $9,325 a year (about $777 a month) | About $9,512 a year, or $793 a month |
Family | $26,993 a year (about $2,249 a month) | About $27,533 a year, or $2,294 a month |
These are national averages. Your COBRA premium could be higher or lower depending on your employer's plan, where you live, and which coverage tier you had.
Why COBRA costs so much more than your paycheck deduction
While you're employed, your employer usually pays most of your health insurance premium. In the KFF 2025 survey, workers paid an average of $1,440 a year toward single coverage and $6,850 toward family coverage, with employers paying the rest. On COBRA, your employer stops contributing, so you pay the entire premium, including the part your employer contributed before. As HealthCare.gov puts it, you have to pay the full cost of COBRA coverage because your former employer stops contributing.
What you get for that cost is the same COBRA plan you had as an employee: the same network, deductible, out-of-pocket maximum, and drug coverage. Nothing about your health benefits changes, only who pays the premium.
How to estimate your COBRA premium
Your plan administrator will tell you the exact amount, but you can estimate it now.
Option 1: Use your pay stub.
- Find your monthly health insurance deduction (for example, $120).
- Ask HR for your employer's monthly contribution (for example, $657).
- Add them: $120 + $657 = $777 total monthly premium.
- Multiply by 1.02: $777 x 1.02 = about $793 a month.
Option 2: Use your W-2.
- Look at Box 12, code DD, on last year's W-2. It shows the total annual cost of your employer-sponsored health coverage.
- Divide by 12 to get the monthly premium, then multiply by 1.02.
Your COBRA election notice has the official amount. Premiums can also change if your former employer's group health plan renews with its insurance carrier at a new rate during the year.
What affects your COBRA cost
- Coverage tier. Covering a spouse or dependent children costs more than self-only coverage.
- Plan design. Plans with lower deductibles and broader networks generally have higher premiums than high-deductible plans.
- Location. Health care costs, and premiums, vary by region.
- Your employer's group. Premiums depend on your former employer's group plan and its renewal rates, so two people with similar coverage at different companies can pay very different amounts.
- Disability extension. If your COBRA coverage is extended because of a disability, the plan can charge up to 150% of the premium during the extension, according to the Department of Labor.
COBRA health insurance basics: who qualifies and how long it lasts
COBRA is named for the Consolidated Omnibus Budget Reconciliation Act, the federal law that lets you and your family keep your employer's group health plan for a limited time after certain life events. This is called COBRA continuation coverage.
- Employer size. Federal COBRA generally applies to group health plans from employers with 20 or more employees. Many states have their own continuation laws, sometimes called "mini-COBRA," for smaller employers.
- Qualifying events. A qualifying event can be voluntary or involuntary job loss, reduced hours, divorce or legal separation, death of the covered employee, or a dependent child aging out of a parent's plan. You generally must have been on the plan before the qualifying event.
- How long it lasts. COBRA usually lasts up to 18 months. Certain events can extend it to 29 months (disability) or 36 months (for example, divorce or the death of the covered employee).
COBRA deadlines that affect what you pay
- Election. You have 60 days to elect COBRA coverage, starting when your job-based coverage ends or when you get your election notice, whichever is later.
- First payment. You don't have to pay when you elect. You have at least 45 days after electing to pay the first premium, and coverage is retroactive to when your old coverage ended.
- Monthly payments. Later payments have a grace period of at least 30 days. If you don't pay within the grace period, your coverage can be canceled.
Because coverage is retroactive, some people wait to elect COBRA and only pay if they need care during the election window. That can leave you with a large bill if you do need care, so read your notice carefully and ask the plan administrator if you're unsure.
COBRA vs. other health insurance options
COBRA isn't your only choice when you lose job-based coverage. Compare it with:
- Marketplace plans. Affordable Care Act Marketplace plans are an option when you lose coverage. Losing job-based coverage is a qualifying life event that opens a Special Enrollment Period: you can enroll in a Marketplace plan within 60 days. Depending on your income, you may qualify for premium tax credits that lower your monthly cost. KFF puts the average 2026 benchmark Marketplace premium at $625 a month for a 40-year-old before subsidies. See our guide to health insurance premiums for more on how Marketplace prices are set.
- Medicaid and CHIP. If your income has dropped, you or your children may qualify. You can apply any time of year.
- A spouse's or partner's employer plan. Losing your coverage usually lets you join a spouse's plan outside its normal open enrollment.
- A new employer's plan. If you're starting a new job soon, its employee benefits may start within weeks, so COBRA may only need to bridge a short gap.
- Short-term health insurance. These plans can cost less, but they don't have to follow Affordable Care Act rules and may not cover pre-existing conditions. Read the plan details carefully.
One important rule: according to HealthCare.gov, voluntarily dropping COBRA or choosing to stop paying the premiums doesn't qualify you for a Special Enrollment Period. If you want to switch from COBRA to a Marketplace plan mid-year, do it within 60 days of losing your job-based coverage, or wait for open enrollment or the end of your COBRA coverage.
When COBRA may be worth the cost
- You're in the middle of treatment. COBRA keeps you with the same doctors, hospitals, and drug coverage.
- You've already met much of your deductible. Staying on the same plan keeps the amounts you've paid toward your deductible and out-of-pocket maximum this year. A new plan starts those totals over.
- You need a short bridge. If new employer-sponsored coverage starts in a month or two, COBRA can fill the coverage gap without changing networks.
- Your doctors aren't in other networks. If the Marketplace plans available to you don't include your providers, COBRA's higher premium may be worth it. Our guide to in-network vs. out-of-network care explains why that matters.
Can you pay COBRA premiums with an HSA or FSA?
A health savings account (HSA) generally can't be used for insurance premiums, but COBRA is one of the exceptions. According to IRS Publication 969, HSA funds can pay premiums for health care continuation coverage such as COBRA, health coverage while you're receiving unemployment compensation, qualified long-term care insurance, and Medicare and other coverage once you're 65 or older (not Medicare supplement policies). Your HSA stays with you after you leave your job, and you can keep using it for qualified medical expenses.
Health FSAs can't be used to pay insurance premiums. If you had a health FSA, check whether your plan lets you continue it through COBRA and what deadlines apply to your remaining balance. See our guides to HSAs vs. FSAs and HSA withdrawal rules.
How to decide
Before your election deadline, line up your options side by side:
- The monthly COBRA premium from your election notice
- Marketplace premiums after any tax credits, from HealthCare.gov or your state marketplace
- Each plan's deductible, out-of-pocket maximum, and network
- How much you've already paid toward this year's deductible
- How long you expect to need coverage
A lower premium isn't always cheaper overall if it restarts your deductible or leaves out your doctors. Compare the total yearly cost, not just the monthly price.
