COBRA monthly cost is usually the full employer health premium, what you and the company paid combined, plus up to a 2% administrative fee (about 102% of the premium). It is not the small amount that used to come out of your paycheck. That surprise is why so many people ask “how much is COBRA per month?” only after they see the election notice.
The basic COBRA price formula
Monthly COBRA ≈ (total premium for your coverage tier) × 1.02
Example: If the employer plan costs $650/month for employee-only coverage and your paycheck deduction was $150, COBRA is based on roughly $650, not $150. With the 2% fee, expect about $663/month. Family tiers often run well over $1,500, $2,500+ depending on the plan and region.
Use the COBRA cost calculator once you have the full premium from HR or the COBRA administrator, guessing from your old deduction understates the bill.
Where to find the real premium
- Read the COBRA election notice (mailed or emailed after your qualifying event).
- Ask HR or benefits for the current monthly rates by tier: employee, employee+spouse, employee+children, family.
- Check whether dental and vision are separate COBRA elections with their own premiums.
- Confirm if your employer temporarily subsidizes COBRA (uncommon, but possible in severance packages).
What makes COBRA expensive
- Employers often pay 70 to 80%+ of employee-only medical cost; that subsidy disappears on COBRA.
- Family coverage multiplies the sticker price.
- High-cost regions and rich PPO plans push full premiums higher.
- The 2% fee adds a little, but the lost employer share is the main jump.
How long you pay
Many qualifying events allow up to 18 months of continuation; some secondary events extend further under federal rules. You can cancel when other coverage starts, but watch Marketplace special enrollment and new-hire waiting periods so you do not create a gap, or pay an extra unnecessary month.
Ways to lower the effective cost
- Compare Marketplace plans with premium tax credits based on expected household income.
- Check Medicaid/CHIP eligibility if income drops.
- Enroll in a new employer’s plan as soon as you are eligible.
- Ask whether a spouse’s employer plan is open for special enrollment after your loss of coverage.
- If severance includes a COBRA subsidy, get the duration and taxable treatment in writing.
Budgeting tips
COBRA is billed monthly and is unforgiving on late payments. Put the first due date on your calendar when you elect. If cash is tight, model a short COBRA bridge (for example, through a surgery or until a new plan starts) rather than assuming you must keep it for the maximum months.
Also separate COBRA from other exit costs: final pay timing does not change the premium, but your severance and savings determine how many months you can float 102% pricing.
Sample monthly ranges (illustrative only)
Costs vary by employer, region, and plan richness, but many workers see employee-only COBRA in the mid-hundreds to around $1,000+ per month, while family coverage often lands in the high hundreds to well over $2,000. Your notice, not national averages, controls the bill. If dental and vision are elected separately, add those lines to the medical premium before you call the total “COBRA.”
Ask HR whether the quoted rate already includes the 2% fee. Some notices show premium and fee as separate lines; others present a single 102% figure.
Get a realistic monthly figure with the COBRA cost calculator using the full plan premium from your election packet, then decide how many months you truly need before other coverage begins.
Disclaimer: This article is general information, not legal or insurance advice. COBRA premiums, fees, and maximum coverage periods depend on your plan and federal/state continuation rules. Verify amounts and deadlines with your plan administrator.
Frequently Asked Questions
What does how much is cobra per month mean in practice?
In plain terms, how much is cobra per month is the idea this guide explains: the measurable result or decision factors people need before they act. Focus on the definition, the inputs, and the time window. Details beyond that belong in the supporting sections above.
Which inputs change the result the most?
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Start with complete inputs, keep units consistent, and compute in a fixed order. For how much is cobra per month, write intermediate totals before the final figure, then confirm directionality with the related Multicalify calculator. If a required input is missing, mark the result as provisional.
How should I use the calculator with this guide?
Use the sections above as context, then enter your own numbers. Generic answers about how much is cobra per month improve quickly when real statements replace placeholders. Re-run the related Multicalify calculator whenever a major fee, rate, date, or measurement changes.
Is this personalized advice?
No. This article is educational. Rules, costs, and outcomes for how much is cobra per month vary by jurisdiction and by individual circumstances. Calculator results are estimates, not guarantees. Confirm details with a qualified professional or official primary sources when the decision is high stakes.
Conclusion
Keep the definition, the inputs, and the interpretation of how much is cobra per month separate. That structure prevents confident mistakes.
A practical habit is to re-run the related calculator whenever a major assumption changes.
Clear inputs, honest assumptions, and a second pass with conservative figures will serve you better than chasing a single perfect number for how much is cobra per month.