COBRA Premium Rate Increases
If your group health plan changes insurers or policy terms while you are on continuation coverage, your continuation coverage may change accordingly. Your former employer or plan must notify you before the effective date of the premium change, but the law does *not* specify how many days of advance notice you must receive.
Plans generally are permitted to increase your premium only once in a 12-month determination period.
Why Does COBRA Cost So Much?
COBRA can feel expensive because you are paying the full cost of the health insurance premium. When you were employed, your employer likely covered most of that amount. Under COBRA, you pay both your share and the employer’s portion, plus up to a 2% administrative fee. Premiums can also increase during the year if the overall group plan rates go up.