What COBRA will cost each month and over the coverage period: up to 102% of the full plan cost, 150% in a disability extension, compared with what you paid and a Marketplace quote
Updated October 2026
Under COBRA the plan can charge you up to 102% of what the coverage costs. That cost covers both the share you paid from each paycheck and the share your employer paid, plus 2% for administration (26 CFR 54.4980B-8). During an 11-month disability extension it can charge up to 150%. The formula is simply total monthly plan cost × 1.02.
Worked example with 2025 averages. KFF’s 2025 Employer Health Benefits Survey puts the average family premium at $26,993 a year, or $2,249.42 a month. The average worker paid $6,850 of it, $570.83 a month. On COBRA the same coverage costs up to $2,249.42 × 1.02 = $2,294.41 a month. That is $1,723.58 more than the worker was paying, about 4.0 times as much. Over the full 18 months it comes to $41,299. For single coverage the average plan costs $777.08 a month, of which the worker paid $120.00, so COBRA would run up to $792.62.
The figure to use is on your COBRA election notice, which must list the premium and due dates. If you do not have it yet, ask HR for the total monthly cost of your plan tier, or check your pay stub and benefits portal for the employer contribution.
| Rule (DOL COBRA guide, 26 CFR 54.4980B-8) | What it means |
|---|---|
| Employers covered | Private employers with 20 or more employees, and state and local governments; many states have “mini-COBRA” laws for smaller employers |
| 18 months | Job loss (other than for gross misconduct) or a cut in hours |
| 29 months | Social Security finds a family member disabled within the first 60 days of COBRA; months 19 to 29 can cost up to 150% |
| 36 months | Death of the employee, divorce or legal separation, Medicare entitlement, a child losing dependent status; also a second qualifying event during an 18-month period |
| Premium cap | 102% of the plan’s cost (150% in the disability extension) |
| Election period | At least 60 days |
| First payment | At least 45 days after you elect |
| Later payments | Monthly if you ask, with a grace period of at least 30 days |
If you pay after the first day of a coverage period but inside the grace period, the plan may cancel coverage until the payment arrives and then reinstate it back to the start of the period.
| Situation | Total plan cost a month | COBRA a month | Months | COBRA total |
|---|---|---|---|---|
| Average single plan (KFF 2025), 18 months | $777.08 | $792.62 | 18 | $14,267 |
| Average family plan (KFF 2025), 18 months | $2,249.42 | $2,294.41 | 18 | $41,299 |
| Family plan, 6 months until a new job | $2,249.42 | $2,294.41 | 6 | $13,766 |
| Audit example: $1,850 plan, 18 months | $1,850.00 | $1,887.00 | 18 | $33,966 |
| $1,850 plan with disability extension, 29 months | $1,850.00 | $1,887.00 | 29 | $64,491 |
| Average family plan, divorce, 36 months | $2,249.42 | $2,294.41 | 36 | $82,599 |
With the disability extension, the $1,850 plan costs $1,887.00 for months 1 to 18 and up to $2,775.00 for months 19 to 29, $64,491 in all. If severance covers the first 3 months of the average family plan, you pay $34,416 over the rest of the 18 months.
Losing job-based coverage opens a 60-day special enrollment window on HealthCare.gov, and you can shop it before deciding on COBRA. HealthCare.gov notes that Marketplace plans may cost less than COBRA, especially if you qualify for savings based on your income. Get a quote with your expected income for the year, and enter the premium after the tax credit. Then compare deductibles, out-of-pocket maximums and whether your doctors are in the network, not just the premium.
Timing matters. If you choose COBRA and later drop it on purpose, that does not open a special enrollment period, so you would wait for open enrollment. When COBRA runs out, or your former employer stops paying its share, you can switch. Some people keep COBRA for a month or two to bridge the gap until a Marketplace plan starts.
It uses the premium you enter and the federal maximums. Your plan may charge less, and state continuation laws for small employers set their own rules. The estimate does not include deductibles, copays or out-of-pocket costs. It does not price a Marketplace plan or the premium tax credit, and it does not cover Medicare timing. If you are eligible for Medicare, the DOL guide warns that choosing COBRA instead of Medicare can mean a Part B late enrollment penalty and a gap in coverage. For your own case, check the plan’s election notice, call the plan administrator, or contact EBSA at 1-866-444-3272.