How Much Does COBRA Cost? — Unblind Health

COBRA can cost much more than the amount you used to see deducted from your paycheck because you may have to pay both your old employee share and the amount your employer was paying. A plan can generally charge up to 102% of the total plan cost for standard COBRA coverage.

That is why the first COBRA premium after a layoff can feel surprisingly high even though the health plan itself has not changed.

Why does COBRA suddenly look so expensive?

Your paycheck usually showed only your share of the premium. While you were employed, your employer may have been paying a large portion behind the scenes.

Under COBRA, the plan can generally require you to pay:

your old employee contribution + the employer contribution + up to 2% administrative charge

So if the full monthly plan cost was $2,000 but you were paying only $500 through payroll, a COBRA premium near the full $2,000 can be possible. That is a hypothetical example, not a typical price.

How do you find your actual COBRA premium?

Use the COBRA election notice, not your old paycheck deduction. The notice should tell you what continuing the coverage will cost.

If you do not have it yet, ask HR or the plan administrator:

“What is my monthly COBRA premium for the same coverage I have now, and is the company subsidizing any part of it?”

That gives you the number you actually need for comparison shopping.

Can your former employer pay part of COBRA?

Yes. Employers can choose to subsidize COBRA, including through a severance package. They are not generally required to do so.

This can completely change the decision. A COBRA plan that looks expensive at full cost may become competitive if your employer pays part of the premium for several months.

Ask how long any subsidy lasts and what the premium becomes when it ends.

Does your deductible start over on COBRA?

Usually, no — because COBRA generally continues the same group health plan. Your existing deductible and other plan accumulators generally continue under the plan rather than resetting simply because your employment ended. That can be valuable late in the year if you have already spent heavily toward your deductible or out-of-pocket maximum. A cheaper Marketplace premium can still cost more overall if switching means starting a new deductible from zero.

What else stays the same with COBRA?

COBRA generally gives you the same plan terms available to similarly situated active employees. That can preserve your network, prescription formulary, copays, deductibles, and claims process, subject to changes the employer makes to the plan for active employees too. Continuity is one of COBRA's biggest advantages. It can matter if you are in treatment, have a scheduled procedure, or rely on a specific specialist or medication.

Is COBRA worth the cost?

It can be, but the premium alone does not answer the question. COBRA deserves a closer look when:

your former employer is subsidizing it;
you have already met much of the deductible or out-of-pocket maximum;
you are in ongoing care and changing networks would be disruptive;
you need short-term continuity before another plan starts.

If none of those apply, Marketplace coverage may be much cheaper, especially if you qualify for a premium tax credit.

For that decision, see COBRA vs Marketplace: Which Is Cheaper After Job Loss?.

What should you compare before electing COBRA?

Compare the cost from today through the end of the plan year. Get these numbers:

monthly COBRA premium;
any employer subsidy and when it ends;
deductible already met;
amount already paid toward the out-of-pocket maximum;
Marketplace net premium after any tax credit;
deductible and out-of-pocket maximum on the Marketplace alternative.

That is enough to make a real comparison without turning the decision into an insurance spreadsheet project.

Bottom line

COBRA can generally charge up to 102% of the total plan cost, which is why it may be far more expensive than your old payroll deduction.

But full-price COBRA is not automatically a bad deal. If an employer subsidizes it, you have already spent heavily under the plan, or continuity matters, the total cost can still make sense.

Unblind Health provides general healthcare pricing and coverage information for educational purposes. COBRA rights, premiums and plan terms vary. This is not medical, legal, tax or insurance advice.

Sources

Sources checked August 30, 2026.