COBRA Premium Cost Calculator 2026
Calculate the full COBRA premium you will pay each month after losing employer coverage. Includes the 2% administrative fee allowed under federal COBRA rules and an 18-month total cost projection.
How COBRA Premiums Are Calculated
Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), federal law lets you keep employer health coverage after job loss for up to 18 months — but the price is the full premium your employer was paying plus your share, not just the share you saw on your paycheck. Add the employer subsidy ($800/month is typical for family coverage in 2026) plus your employee share ($200/month) and you get a $1,000 base premium. COBRA rules also allow up to a 2% administrative fee, taking the total to $1,020/month. Disability extensions to 29 months allow a 50% admin fee on the 19th-29th months. The full 18-month cost for that family at $1,020/month would be $18,360 — a number that surprises most newly unemployed workers who expected to keep paying just $200.
What COBRA Includes and Excludes
COBRA continues the exact same plan you had as an employee — same network, same deductible, same prescription formulary. It usually includes any coverage tiers you previously elected (medical, dental, vision, mental health) but each can be elected or dropped separately. Your deductible and out-of-pocket maximum carry over from the year you started, so if you have already met them you keep that credit until December 31. Wellness perks tied to active employment (gym subsidies, ergonomic stipends) typically end. Your 401(k) and life insurance are NOT continued under COBRA — those are separate benefits with separate continuation rules. Some employers pay your COBRA premium during a severance period as part of the package, often 2 to 6 months; check the severance agreement carefully.
When COBRA Makes Sense — and When It Does Not
COBRA wins three scenarios: you have already hit your deductible mid-year, you are mid-treatment with specialists not in Marketplace networks, or your household income exceeds ACA subsidy limits making unsubsidized Marketplace plans nearly as expensive. COBRA loses if you expect low income during unemployment (Marketplace subsidies cap premiums at 2-8.5% of income), if you need coverage longer than 18 months (the cap forces a switch eventually), or if you are healthy and rarely use the plan. The 60-day enrollment window is retroactive — you can wait and elect COBRA later if you have a sudden medical need, then pay back premiums. Once you drop COBRA you cannot re-enroll. Last updated: 2026, based on Department of Labor COBRA model notice rules and IRC Section 4980B.
Reading Your Result
The summary shows your full monthly COBRA premium (employer subsidy + your share + admin fee), the cost over the months you specified, and the 18-month maximum cost if you stay the full duration. If your employer pays during severance, your effective out-of-pocket starts later. Always compare against the second-lowest Silver plan in your state Marketplace and your spouse's employer plan (special enrollment opens for them too) before electing COBRA. For most families, Marketplace with subsidies wins by $5,000-$15,000 over 18 months.
Frequently Asked Questions
Why is COBRA so expensive?
COBRA charges you the full premium your employer was paying — your former employee contribution plus the employer's subsidy — and federal law allows an additional 2% administrative fee. Family coverage averages around $24,000/year in 2026 employer plans, so COBRA runs $1,500-$2,200/month for family and $600-$900/month for individual. The cost feels like a sudden cliff because employers usually pay 70-80% of premiums while you work.
How long does COBRA last?
Up to 18 months for most qualifying events (job loss, reduction in hours). Extends to 29 months if you become disabled within the first 60 days of COBRA, and to 36 months for dependents in cases of divorce, death, or loss of dependent status. The clock starts the day after employer coverage ends, regardless of when you elect.
Can my employer pay COBRA as part of severance?
Yes — many severance packages include 2 to 6 months of COBRA premiums paid by the employer. After the subsidy period ends, you continue at the full COBRA rate. Some packages give you a lump-sum equivalent instead, which you can choose to spend on Marketplace premiums if cheaper.
Do I have to elect COBRA within 60 days?
Yes. You have 60 days from the qualifying event (or notice date, whichever is later) to elect COBRA. Election is retroactive — you can wait and enroll in month 2 if a medical event happens, but you must pay back premiums to cover the visit. Use this window to compare Marketplace plans without committing.
What is creditable coverage and why does it matter?
Creditable coverage is a drug benefit at least as good as Medicare Part D, used to avoid Part D late enrollment penalties. Most employer COBRA plans qualify as creditable. If you are 65+ and on COBRA, you must enroll in Medicare Part D within the Special Enrollment Period when COBRA ends, or face a permanent late enrollment penalty.
Is this calculator private?
Yes. All calculations happen entirely in your browser. Your premium data never leaves your device and is not sent to any server.