COBRA Cost Calculator
The real 102% rule behind why COBRA feels so much more expensive than your old paycheck deduction.
Your old plan
Check a recent pay stub for your health insurance deduction.
Ask HR or check your benefits summary — this is the part you won't see on COBRA.
Estimated COBRA Premium
$714/mo
That's $564/mo more than you were paying
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The Rule Behind the Sticker Shock
COBRA lets you keep your exact former employer health plan after leaving a job — but it removes the subsidy your employer was quietly paying on your behalf. Federal law caps COBRA premiums at 102% of the plan's full cost, which sounds like a small markup until you realize "full cost" now includes the employer's share too, not just yours.
Worked Example
| Factor | Amount |
|---|---|
| Your old payroll deduction | $150/mo |
| Employer's old contribution | $550/mo |
| Full group premium | $700/mo |
| 2% administrative fee | $14/mo |
| Total COBRA premium | $714/mo |
Going from a $150/mo deduction to a $714/mo bill is a real and common jump — it's not a pricing error, it's the design of the law. This is exactly why comparing COBRA against a subsidized ACA Marketplace plan before deciding is worth the ten minutes it takes.
COBRA
- Keeps your exact same doctors, plan, and network with zero disruption
- No new deductible if you've already met this year's
- No income-based discount available
ACA Marketplace
- Can include a substantial premium tax credit based on income
- New plan means a new deductible and possibly a new network
- Often meaningfully cheaper after the subsidy for low-to-moderate income households
Worth knowing: Losing job-based coverage opens a 60-day special enrollment window for the ACA Marketplace — run your income through our Health Insurance Subsidy Calculator before your COBRA election deadline to see whether a subsidized plan beats this number.
Frequently Asked Questions
How is COBRA cost calculated?
By law, COBRA premiums can be up to 102% of the full cost of the group health plan — the portion you used to pay through payroll, plus the portion your employer used to pay, plus a 2% administrative fee. This is why COBRA often feels shockingly expensive compared to what came out of your paycheck.
Why is COBRA so much more expensive than my employee premium?
While employed, your employer typically pays a large share of the premium behind the scenes — often 50-80% of the total cost. COBRA removes that subsidy entirely: you pay the full premium your employer used to help cover, plus a 2% fee.
How long does COBRA coverage last?
Typically 18 months after a qualifying event like job loss, though certain circumstances (disability, divorce, a dependent aging out) can extend it up to 36 months in some cases.
Is COBRA or an ACA Marketplace plan cheaper?
It depends entirely on your income. COBRA has no income-based discount, while a Marketplace plan can come with a substantial premium tax credit if your income qualifies — often making the Marketplace meaningfully cheaper for the same or similar coverage. Compare your COBRA cost against our Health Insurance Subsidy Calculator.
Does losing a job qualify me for a special enrollment period on the Marketplace?
Yes — losing job-based coverage is a qualifying life event that opens a 60-day special enrollment window to sign up for an ACA Marketplace plan outside the normal Open Enrollment period.
Can I switch from COBRA to a Marketplace plan later?
Generally only during Open Enrollment or if you have another qualifying event, since voluntarily dropping COBRA outside those windows typically doesn't trigger a new special enrollment period — decide early rather than assuming you can switch anytime.
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