How Much Does COBRA Cost?
How much will I have to pay for my health insurance on COBRA?
The average monthly cost of COBRA Insurance premiums ranges from $400 to $700 per individual.
There is also a 2% Administration fee that is also collected by the plan administrator.
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No Pre-Existing Conditions?
If you do not have pre-existing conditions, visit the health enrollment center to learn about private marketplace to find plans that are more affordable than COBRA continuation.
The Actual Cost of COBRA Insurance
Many assume that what their employer deducted from their paycheck is what they’ll pay per month in COBRA insurance. However, the actual cost of COBRA insurance is often misunderstood. When an employee is working, the employer typically pays a portion of the health insurance premium, and the employee pays the remaining amount through their contribution. When COBRA insurance starts, the individual must pay the full amount of the insurance premium, including both the part previously covered by the employer and their own prior contribution. An administration fee is added on top of this. As a result, COBRA insurance initially appears more expensive, but in reality, the actual cost of coverage hasn’t changed.
It’s simply that the responsibility for paying the entire premium has shifted from being shared between the employer and employee to being solely the responsibility of the individual.
Therefore, the actual cost of COBRA insurance is the total amount that was previously paid by the company and the employee, without any subsidy from the employer.
COBRA insurance costs include:
- The entire monthly premium of the employer plan that you are continuing
- An additional 2% in administration fees
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COBRA Eligibility
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.
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Administration Fee
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.
Your Administrator
A COBRA administrator is responsible for managing the continuation of healthcare coverage under the Consolidated Omnibus Budget Reconciliation Act (COBRA), handling tasks like sending notices, managing enrollment, and collecting premiums. Their primary function is to ensure compliance with federal guidelines for both employers and eligible former employees or dependents.
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Frequently Asked Questions
How much does COBRA insurance cost?
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.
Why is COBRA more expensive than employer-sponsored insurance?
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.
Are there any financial assistance programs for COBRA?
Financial assistance or tax credits may be available to eligible individuals to help cover COBRA costs. Eligibility depends on specific program criteria.
Can COBRA costs change over time?
Yes, COBRA costs can change if the underlying health plan premiums are adjusted during the coverage period.
Licensed Insurance Agents
Do you have more COBRA questions? Try contacting a healthcare.gov-certified insurance specialist. These COBRA customer service agents are licensed in all 50 states. They can offer advice and cost alternative plans that best suit your needs.
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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.
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).
Average Monthly COBRA Premium Cost By State
Last updated: January 7, 2025
| State | Average Monthly Premium |
|---|---|
| Alabama | $564 |
| Alaska | $1,088 |
| Arizona | $529 |
| Arkansas | $494 |
| California | $412 |
| Colorado | $495 |
| Connecticut | $746 |
| Delaware | $631 |
| Florida | $593 |
| Georgia | $552 |
| Hawaii | $478 |
| Idaho | $307 |
| Illinois | $456 |
| Indiana | $422 |
| Iowa | $502 |
| Kansas | $501 |
| Kentucky | $509 |
| Louisiana | $545 |
| Maine | $509 |
| Maryland | $412 |
| Massachusetts | $507 |
| Michigan | $457 |
| Minnesota | $452 |
| Mississippi | $451 |
| Missouri | $509 |
| Montana | $540 |
| Nebraska | $584 |
| Nevada | $438 |
| New Hampshire | $325 |
| New Jersey | $492 |
| New Mexico | $437 |
| New York | $747 |
| North Carolina | $598 |
| North Dakota | $594 |
| Ohio | $457 |
| Oklahoma | $509 |
| Oregon | $408 |
| Pennsylvania | $456 |
| Rhode Island | $456 |
| South Carolina | $509 |
| South Dakota | $509 |
| Tennessee | $509 |
| Texas | $509 |
| Utah | $509 |
| Vermont | $1,275 |
| Virginia | $509 |
| Washington | $389 |
| West Virginia | $955 |
| Wisconsin | $509 |
| Wyoming | $509 |
COBRA Rules In Your State
For detailed information on mini-COBRA laws, which can vary significantly by state, ensuring you have the most accurate and up-to-date guidance is essential. These state-specific regulations are crucial 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.
COBRA COSTS
$400 - 700
on average, per month
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