The short answer
COBRA costs 102% of the full premium for your existing plan — the whole thing, employer share included, plus a 2% administrative fee. Nationally that works out at about $793 a month for single coverage and $2,294 for a family.
But the national average is close to useless for your decision, because COBRA is not a product with a price. It is your specific plan, at your former employer's negotiated rate. A generous plan at a large employer costs far more than a basic one at a small firm. The only number that matters is on your election notice.
What actually determines your number
- Your employer's plan, not the market. Two people laid off the same week from different companies can face figures hundreds of dollars apart for similar coverage.
- Who you cover. Employee-only, employee-plus-one, and family are usually three separate rates. You do not have to continue everyone — see below.
- The 2% fee. Ordinary COBRA is capped at 102% of the plan's total cost. The only exception is the disability extension, where months 19 to 29 may be charged up to 150%.
- Nothing about you. Age, health and income do not change a COBRA premium. That is unusual, and occasionally it is the reason COBRA wins.
The lever most people miss
You can elect COBRA for some family members and not others. Each qualified beneficiary has an independent right to elect. If your spouse can join their own employer's plan and the children cannot, you can continue COBRA for the children alone and pay the lower rate.
The same logic runs the other way. If one person in the household is mid-treatment and needs the network kept, COBRA for that person plus a marketplace plan for everyone else is often far cheaper than COBRA for the whole family — and nobody at the plan administrator will suggest it.
What to compare it against
A marketplace plan is the realistic alternative, and the comparison is not premium-to-premium. Marketplace premiums are income-tested; COBRA is not. Below 400% of the federal poverty level a premium tax credit can cut the marketplace figure sharply, and losing job-based coverage opens a Special Enrollment Period to buy one.
Two things push the other way. Your COBRA deductible carries forward — if you have already spent $3,000 of a $4,000 deductible this year, a new plan resets that to zero on January 1 of its own terms. And COBRA keeps your exact network. If you are mid-treatment, that can be worth more than the premium difference.
The full comparison, including the two 60-day clocks · Is COBRA worth it? · COBRA cost calculator
You do not have to pay yet
You have 60 days to elect and a further 45 days after electing to make the first payment. Coverage is backdated to the day your old plan ended once you pay. So the real question in month one is not "can I afford this?" but "do I need to commit yet?" — and usually the answer is no.
How the payment window works · Is COBRA retroactive?
How COBRA works · COBRA vs a marketplace plan · What COBRA costs · All your options after a job ends
Common questions
How much does COBRA cost per month?
Nationally about $793 for single coverage and $2,294 for a family, but that average tells you very little. COBRA is 102% of your former employer's actual plan cost, so it varies enormously between employers. Your exact figure is on your election notice.
Why is COBRA so expensive?
Because you are now paying the employer's share as well as your own. Most employers cover the majority of the premium for active employees, so the amount on your payslip was only part of the cost. Nothing about the plan changed when you left — only who pays.
Can I pay COBRA for just one person in my family?
Yes. Each qualified beneficiary has an independent right to elect, so you can continue coverage for one family member and not others. This is one of the most useful and least advertised features of COBRA, and it can cut the cost substantially.
Is COBRA cheaper than a marketplace plan?
Sometimes, and it depends almost entirely on your income. Marketplace premiums are income-tested and COBRA is not, so below 400% of the federal poverty level the marketplace is usually cheaper. Above it, COBRA can win — especially if you have already met most of your deductible this year.
Does the 2% administrative fee get added on top?
No. The 102% figure already includes it — 100% of the plan cost plus 2%. If someone quotes you the premium and then adds 2%, they have counted it twice.
Can my premium go up while I am on COBRA?
Yes. Plans generally set COBRA rates for a 12-month determination period, and your rate can change when the plan year turns over, exactly as it would for active employees.
Is there any subsidy for COBRA?
Not currently. The federal COBRA subsidy under the American Rescue Plan ended in September 2021. Some employers offer to cover part of the premium in a severance package — worth asking about specifically, because it is negotiable and often not offered unprompted.
Talk it through with a licensed agent
Which option is right depends on your state, your income and which doctors you need to keep. A licensed agent can walk through it with you in about eight minutes.
Free to call, no obligation, and we never ask you for payment. CobraScout is paid by the agency that answers, not by you. TTY 711.
Sources
- KFF, 2025 Employer Health Benefits Survey
- U.S. Department of Labor, FAQs on COBRA Continuation Health Coverage for Workers
- Centers for Medicare & Medicaid Services, COBRA Continuation Coverage fact sheet
- KFF, 2026 Marketplace enrollment, premiums and deductibles