COBRA Cost Calculator

How COBRA costs are calculated

• Full group premium: under COBRA you pay the entire premium — both your share and the share your employer was paying — plus a 2% administrative fee. If you were paying $200/month and your employer paid $600, your COBRA premium is ($200 + $600) × 1.02 = $816/month.
• The 2% admin fee: Federal law (ERISA and IRC § 4980B) allows the plan administrator to charge up to 2% over the full premium cost to cover administrative expenses. Most employers charge the full 2%.
• Coverage duration: 18 months is the standard maximum for job loss or reduced hours; 29 months if you are determined disabled during the first 60 days; 36 months for other qualifying events (death, divorce, Medicare entitlement, dependent aging off at 26).
• Employer contribution benchmarks (2025): per the KFF Employer Health Benefits Survey, employers pay roughly 73% of single coverage premiums (national average $648/mo employer, $238/mo employee) and 67% of family premiums ($1,567/mo employer, $635/mo employee). These benchmarks help if you do not know your employer's share.

Worked example

Employee pays $238/month; employer pays $648/month; total group premium = $886. COBRA monthly = $886 × 1.02 = $904/month. Admin fee = $18. For 18 months: $16,272 total. That is $666/month more than the employee was paying before losing coverage.

Compare to an ACA silver plan: the national unsubsidized average was about $450/month in 2025 for an individual. If you qualify for an ACA premium subsidy (income 100–400% of FPL), the ACA plan will almost always cost less — but COBRA keeps your existing in-network providers and meets HSA-eligible HDHP rules if applicable.

COBRA vs. ACA marketplace: when COBRA wins

COBRA costs more for most people, but it has specific advantages:

• Provider continuity: if you are mid-treatment or have a preferred specialist, COBRA keeps the same network rather than forcing a new one.
• HSA eligibility: if your employer plan is an HDHP (High Deductible Health Plan), COBRA continuation keeps you HSA-eligible. ACA marketplace plans rarely qualify.
• Year-end deductibles: if you have met a significant portion of your annual deductible, COBRA lets you keep that credit for the rest of the calendar year. An ACA plan resets to zero.
• When ACA wins: if you are outside active treatment, have no specialist continuity needs, and qualify for an ACA subsidy, the marketplace is almost always cheaper. Loss of job-based coverage is a qualifying life event (60-day window). You can elect COBRA first and switch to ACA within 60 days of your termination date, or during the COBRA election period.

Frequently asked questions

When must I elect COBRA?

You have 60 days from the later of: (1) the date coverage ends or (2) the date the COBRA election notice is provided. Once you elect, coverage is retroactive to the day your employer coverage ended, so you can wait until you have a claim and still be covered — but you must pay all premiums back to the coverage end date.

What if I miss the COBRA election deadline?

Missing the 60-day election window permanently forfeits your COBRA rights for that qualifying event. You would then need to find other coverage — an ACA marketplace plan (loss of coverage is a qualifying life event with a 60-day window), Medicaid if eligible, or a spouse's or parent's plan if applicable.

Does COBRA cover dental and vision?

If dental and vision were separate employer-sponsored plans, those are also eligible for COBRA continuation independently. You do not have to elect COBRA for all plans — you can elect medical only, or elect dental and vision without medical.

Can I drop COBRA before 18 months?

Yes — you can stop paying premiums at any time and coverage ends. You may also drop COBRA if you gain other coverage (a new employer's plan, Medicare, or an ACA plan). There is no penalty for discontinuing early. COBRA premiums are not refundable for months already paid.

Is COBRA premium tax deductible?

COBRA premiums are deductible as medical expenses on Schedule A, subject to the 7.5%-of-AGI floor. If you are self-employed, COBRA premiums may be deductible as self-employed health insurance on Schedule 1, Line 17 — which is above-the-line and not subject to the AGI floor. Consult a tax professional for your specific situation.

Estimates last reviewed November 5, 2026. Results are estimates for educational use; not insurance advice. Methodology →