How Much Does COBRA Cost?
On average, COBRA Insurance premiums range from $400 to $700 per individual. COBRA is a continuation of your most recent employer health plan. The cost is based on the portion paid by the employee through payroll deduction as well as the employer's contribution.
The exact cost depends on the plan you had at work, your coverage level (such as individual or family), and the area where you live. The final amount always appears in your COBRA continuation letter or in the materials sent by the plan administrator.
What You Need to Know
- Monthly premium on COBRA is on average $400 - 700/month per individual.
- A COBRA premium is the actual full cost of the employer health plan. It is the amount the employee paid plus the portion the employer previously covered.
- You will get a notice about the cost of your premium from the employer providing the health plan.
- Once you pay your premium, your health plan restarts retroactively to the date your coverage ended.
Why COBRA is Expensive
Many people are surprised by how expensive COBRA coverage can be compared to what they previously paid while employed. This is because under COBRA, individuals must pay the entire premium for their group health plan, including the portion their employer used to subsidize. While the benefits and overall cost of the plan remain the same, the shift in who pays the full premium feels significantly higher once you're responsible for the full amount.
Administration Fees
Under COBRA, employers may charge an administrative fee of up to **2%** on top of the full health insurance premium. This fee covers administrative costs for managing continued healthcare coverage. Authorized by federal law, it is typically included in the monthly COBRA premium.
Calculate Your COBRA Cost
To estimate your monthly COBRA costs, start by identifying the amount that was deducted from your paycheck for health insurance. Next, add this to the amount that your employer contributed. Together, these figures will give you an estimate of the total monthly cost for continuing your coverage under COBRA.
For a more precise calculation, you can also use the COBRA Premium Calculator.
Use Last Year's W-2 to Determine COBRA Costs
In the W-2 form of the person who paid for the health insurance, Box 12, Code DD shows the total annual cost of employer-sponsored coverage. Divide this by 12 to gauge the monthly COBRA premium.
Remember, this method assumes the cost structure remained the same and the employer-sponsored health insurance cost didn't change. For an exact quote, consult the COBRA plan administrator or your enrollment documents.
Why Pay for COBRA?
COBRA insurance provides a continuation of health coverage for individuals who are transitioning between jobs or experiencing a recent layoff. This program ensures access to necessary medical services, including prescription medications and coverage for pre-existing conditions. When compared to other temporary or short-term insurance options, COBRA insurance offers:
- Lets you extend the same group health coverage offered by your most recent employer.
- Ensures you receive the same group rate and have access to the same network of providers as you did under your recent employer’s plan.
- Means you don’t have to start over in terms of deductibles and in-network providers.
- Can be done with your health savings account (HSA).
No Pre-Existing Conditions?
If you do not have pre-existing conditions, visit the health enrollment center to learn about short-term medical plans before your next work insurance starts. These plans cost a fraction of COBRA continuation.
Find Affordable Medical PlansState Continuation Laws (mini-COBRA)
COBRA continuation is only applicable when the employer has 20 or more employees. Many states provide a similar version of COBRA continuation when it is unavailable due to federal law. These state-specific regulations are important for understanding your rights and options regarding continued health insurance coverage.
Learn more about the mini-COBRA laws in your state and how they may affect you.
Average Cost of COBRA Insurance in 2025
Health insurance plans through an employer are ACA Certified. They cover pre-existing conditions and include prescription medication benefits. COBRA is a continuation of your most recent employer group health plan.
According to Value Penguin, the average cost of individual health insurance in the United States is $537/month in 2025. However, costs vary significantly by state. In Alaska, the monthly average premium is $1,088, for example, while in Idaho, individuals may pay as little as $307 per month for health care coverage.
Average Monthly COBRA Premium Cost By State
Last updated: May 19, 2025
$564
$1,088
$529
$494
$656
$554
$708
$578
$647
$553
$523
$490
$684
$432
$507
$642
$538
$654
$623
$412
$661
$561
$451
$533
$616
$636
$743
$592
$373
$583
$635
$1,038
$664
$627
$536
$603
$610
$610
$477
$538
$690
$558
$610
$675
$1,157
$421
$543
$955
$608
$895
Frequently Asked Questions
COBRA insurance typically costs 102% of the total health plan premium. This includes both the employee and employer contributions, along with a 2% administrative fee.
COBRA is more expensive because the individual is responsible for the entire premium amount without the employer's financial contribution that is provided during active employment.
Financial assistance or tax credits may be available to eligible individuals to help cover COBRA costs. Eligibility depends on specific program criteria.
Yes, COBRA costs can change if the the employer negotiates new health plan premiums.
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