COBRA lets you keep your old employer's health plan after you leave a job, but you pay the whole bill yourself. That's why the first COBRA letter surprises so many people.
How COBRA is priced
Your COBRA premium is generally up to 102% of what the plan costs in total. That's your share, plus the share your employer used to pay, plus up to a 2% administrative fee. If you qualify for a disability extension, it can go as high as 150% for the later months.
Nothing about your health or age changes the price. It's the same rate the plan charges everyone in the group.
What to expect each month
Employer plans commonly cost somewhere in the range of several hundred dollars a month for one person and well over a thousand for a family before the employer's share is taken out. COBRA puts all of it on you. Your election notice lists the exact monthly price, and that's the number to use.
Why your price is different
- The plan itself. A rich PPO costs more than a high-deductible plan.
- Who's covered. Adding a spouse or kids raises the price a lot.
- Your old employer's group. A small or older group can cost more per person.
How to compare it
- Look at the deductible and out-of-pocket maximum, not only the premium.
- Remember the timing. You generally have at least 60 days to elect, and coverage can go back to the day your old plan ended.
- Compare a Marketplace plan and a private PPO during your 60-day window. Either can come in below COBRA, depending on your income and health.
We'll put your COBRA bill next to real options so you can see the difference. Start with our page on COBRA alternatives, and read why COBRA is so expensive and whether you can cancel it any time.
This article is general information, not a guarantee of coverage or pricing. Plan availability, benefits, and eligibility vary by state and individual. Some private plans are medically underwritten and do not include all ACA essential health benefits.