How much does COBRA insurance cost?

COBRA requires you to pay 100% of the health plan premium plus a 2% administrative fee — totaling 102% of the true plan cost. Most employees only see their employee share on their paycheck; the employer's contribution (often 70–83% of the premium) gets added back. Average 2026 COBRA cost: ~$750/month employee-only, ~$2,200/month for a family plan.

How long can I stay on COBRA?

Standard COBRA coverage lasts 18 months when triggered by job loss or reduced hours. It extends to 36 months for qualifying events like divorce, death of the covered employee, or a dependent child aging off the plan. An additional 11-month disability extension is possible, bringing the total to 29 months.

When do I have to elect COBRA?

You have 60 days from the later of: (1) the date coverage ends, or (2) the date you receive the COBRA election notice. Coverage is retroactive if elected — meaning you can wait and only sign up if you need care during the 60-day window.

COBRA makes sense if you: have ongoing treatment, have met your deductible for the year, or can't find comparable ACA coverage. For healthy individuals, a high-deductible ACA marketplace plan is usually far cheaper. Compare total costs including premiums, deductibles, and out-of-pocket maximums.

What qualifies for COBRA?

Qualifying events include: voluntary or involuntary job loss (except gross misconduct), reduction in hours, divorce or legal separation, death of the covered employee, Medicare entitlement, and a dependent child aging off the plan.

COBRA Insurance Calculator 2026

Find out what COBRA will actually cost — not just your employee share.
Compare 18-month total against ACA marketplace alternatives.

Employer + employee + 2% admin fee · 18-month & 36-month totals · 2026 KFF averages

Current Health Plan Details

What You Pay & What Your Employer Pays

Your Monthly Premium (employee share) *

What comes out of your paycheck each month

Employer Monthly Contribution *

2026 avg: ~$600/mo employee-only, ~$1,750/mo family. Ask HR.

Plan Coverage Type

Qualifying Event (for duration)

Don't Know Employer Contribution? Use Averages

2026 National Averages (KFF):
Employee-only plan: ~$748/mo total ($150 employee + $598 employer)
Family plan: ~$2,131/mo total ($510 employee + $1,621 employer)

How Much Does COBRA Cost in 2026?

Most employees are shocked by COBRA costs because they've only ever seen their paycheck deduction — not the employer's contribution. COBRA requires you to pay 102% of the full plan cost, including the portion your employer was paying.

Average COBRA Costs in 2026

Based on the KFF 2026 Employer Health Benefits Survey, average annual premiums for employer-sponsored health insurance in 2026 are approximately $8,951 for employee-only coverage and $25,572 for family coverage. Under COBRA, you pay 102% of those totals — meaning:

Employee-only COBRA: approximately $760/month
Employee + spouse: approximately $1,500–$1,800/month
Family COBRA: approximately $2,200/month
Payroll Taxes Guide
Overtime Rules
Tax Withholding Guide

These are national averages. Your actual COBRA cost depends on the specific plan your employer offers, their carrier, and your location. Use the calculator above with your actual plan premium for an exact figure.

Why COBRA Is So Expensive

If your employer covered 83% of your health plan premium, your $150/month paycheck deduction was just 17% of an $882/month plan. On COBRA, you pay $882 × 102% = $899/month — a roughly 6× increase for identical coverage. The employer contribution simply disappears, and you absorb the full cost plus the 2% administrative fee allowed by law.

How to Calculate Your COBRA Premium

Find your full plan premium — check your benefits enrollment materials or ask HR for the "employer + employee" combined premium. This is different from your paycheck deduction.
Add 2% — multiply the full premium by 1.02 for the administrative fee
That's your monthly COBRA cost — for example: $900 full premium × 1.02 = $918/month COBRA

When COBRA Makes Financial Sense

You have already met your annual deductible and need ongoing care — switching plans resets your deductible
You or a dependent needs continuity of care with specific in-network providers
Your new job starts within 1–3 months and the coverage gap would be very short
Your income is above ~$60,000 and ACA subsidies are minimal
You are between plans mid-year and need specific medication that isn't covered on marketplace plans

COBRA vs ACA Marketplace: Cost Comparison

For most people who lose job-based coverage, the ACA marketplace is significantly cheaper than COBRA — especially with premium tax credits. A 35-year-old earning $45,000/year in 2026 pays approximately $200–$350/month for a Silver plan with subsidies, compared to $760/month for employee-only COBRA. Job loss is a qualifying life event that triggers a 60-day special enrollment window on the marketplace — you don't have to wait for open enrollment.

Exception: If you've already met your deductible for the year, the short-term math may favor COBRA even at the higher premium. Run the numbers before deciding.

FAQ

COBRA insurance questions answered

How much does COBRA cost in 2026?

COBRA costs 102% of the full plan premium — employer share + employee share + 2% admin fee. Average 2026 costs: ~$750/month for employee-only plans, ~$2,200/month for family coverage (KFF 2026 Employer Health Benefits Survey).

How long does COBRA last?

18 months for job loss or reduction in hours; 36 months for divorce, death of covered employee, or a dependent aging off; up to 29 months with a disability extension. Coverage ends early if you fail to pay premiums or enroll in other qualifying coverage.

Can I cancel COBRA at any time?

Yes. You can drop COBRA whenever you get other coverage (new job, marriage, Medicare, Medicaid, etc.). You are not locked in for the full 18 months. However, you cannot re-enroll once you've dropped it.

Is COBRA retroactive?

Yes. You have 60 days to elect COBRA after your qualifying event. If you elect it later in that window, coverage is retroactive to the loss date — meaning you can wait and only elect if you actually need care. You'd owe back premiums for the whole period.