Total COBRA continuation coverage cost after job loss or qualifying event

What COBRA Covers and Costs

COBRA continuation allows employees to keep employer health insurance after job loss, reduction in hours, or other qualifying events for 18 months typically (36 in some situations). Dramatic cost increase from what employee paid while employed — former employee pays full premium (employer portion plus employee portion) plus 2% administration fee. Typical COBRA 500-1,500 monthly for individual, 1,500-3,500 for family. Total 18-month COBRA often 10,000-50,000 — significant expense during already-difficult transition period.

Typical COBRA Costs

Employer-paid portion: typically 70-80% of premium. Monthly premium full cost: 500-800 individual, 1,400-2,000 family. Administrative fee: 2% of total premium. Full COBRA cost individual: 510-820 monthly. Family: 1,430-2,040 monthly. 18-month maximum: 9,200-14,800 individual, 25,700-36,700 family. Some qualifying events extend to 29 or 36 months, dramatically increasing total cost. Alternative: marketplace coverage (ACA) often 50-70% less expensive after subsidies for lower-income post-job-loss individuals.

Worked Example for Typical Situation

Employer premium 400 monthly. Employee portion 100 monthly. Admin 2%. Months 18. Total monthly 500. Admin fee 10. Monthly COBRA 510. 18-month total 9,180. Monthly increase from employee's prior 100 to 510 — 510% jump in out-of-pocket cost. Former employee needs 510 monthly for 18 months (9,180 total). Budget this in severance and transition planning. Many choose ACA marketplace instead — subsidy-eligible individuals often pay 100-300 monthly for comparable coverage.

What the Calculator Does Not Model

Specific ACA marketplace alternative cost with income-based subsidies. Qualification for public health coverage for low-income residents (income below threshold). Employer severance packages that sometimes include extended health coverage. Specific state extensions beyond federal COBRA minimum. Pre-existing condition considerations. Specific plan quality variations. The calculator shows COBRA framework; comprehensive post-employment health coverage decision involves multiple options comparison.

COBRA Alternatives

ACA marketplace: usually cheapest option with income-based subsidies. Coverage effective first day of next month. Spouse's employer plan: often cheapest if available (special enrollment period triggered by job loss). public health coverage for low-income residents: income-qualified individuals, very low cost or free. Short-term health insurance: 30-90 day temporary coverage at lower cost but limited benefits. Evaluate all options before electing COBRA — often significant savings from alternatives available during 60-day COBRA election window.