How Much Does COBRA Cost?
COBRA lets you keep your job's health plan after a layoff — but a plan can charge you up to 102% of the group premium(your share, the employer's share, and up to a 2% fee). Using the latest national benchmark (KFF 2025), that is about $793/month for one person and $2,294/month for a family. Here's how the rule works, a cost table, and how to pay less.
How much does COBRA cost after a layoff?
A plan may generally charge up to 102% of the applicable group-plan premium: the share you already paid, the share your employer used to pay, and up to a 2% administrative fee. Using the latest national benchmark (KFF 2025 employer-plan averages), that is about $793 a month for single coverage and roughly $2,294 a month for a family— national averages, not a quote. Some employers subsidize COBRA and some plans charge less, so your COBRA election notice controls. KFF 2025
Because a layoff usually lowers your income, a subsidized Marketplace plan is frequently cheaper than full-price COBRA. Run both side by side with the COBRA vs Marketplace Calculator before you elect anything.
- Estimated time
- 5 min read
- Cost / impact
- ≈ $793/mo single · ≈ $2,294/mo family (KFF 2025)
- What you need
- Your COBRA election notice (lists the exact rate)
Key takeaways
- COBRA costs 102% of the group premium — the full cost plus a 2% admin fee.
- 2025 averages: about $793/mo single and $2,294/mo family (based on KFF employer-premium data).
- It feels steep because your employer used to pay ~84% of a single premium — now you pay it all.
- A layoff opens a Marketplace Special Enrollment Period, and subsidies often beat full COBRA.
- You have ~60 days to elect, and COBRA is retroactive — so you can shop first, then decide.
How much does COBRA cost?
The single most important thing to understand about COBRA cost is that it is not a discounted or subsidized rate— it is the true, full price of your employer's group health plan. When you were employed, that plan cost a lot; you just never saw most of it, because your employer paid the majority of the premium and your share came out of your paycheck quietly. COBRA simply moves the entire bill to you and adds a small administrative fee on top.
To put real numbers on it, the 2025 Kaiser Family Foundation Employer Health Benefits Survey put the average annual premium for employer coverage at $9,325 for a single person and $26,993 for a family. Add the 2% COBRA fee and divide by twelve, and you get the monthly figures most people face: about $793 for one person and $2,294 for a family. Your plan may be cheaper or more expensive, but the exact amount is printed on the COBRA election notice your plan administrator mails after your coverage ends.
The 102% rule, explained
Federal law lets your plan charge you up to 102% of the total premium for COBRA continuation coverage. Here is what makes up that number:
Your old share
The premium that already came out of your paycheck
+ Your employer's share
The (usually larger) part your employer used to pay
+ 2% administrative fee
= 102% of the full group premium, your monthly COBRA cost
One exception is worth knowing: if you qualify for the 11-month disability extension of COBRA, the plan can charge up to 150% of the premium for those extra months. For a standard layoff, though, 102% is the ceiling that applies.
A few caveats that change the real number: some employers subsidize COBRA for a period as part of severance, and some plans charge less than the maximum— so the amount on your COBRA election notice controls. Federal COBRA generally applies to group health plans of employers that met the federal employee threshold; if your employer was smaller, a state continuation (“mini-COBRA”) law may apply instead, with different rules. U.S. DOL EBSA
COBRA cost table: single vs family
These are averages built from the 2025 KFF employer-premium data and the 102% rule. Use them to sanity-check your election notice — your real number will vary by plan, employer, and region.
| Coverage | Full premium / mo | COBRA (102%) / mo | COBRA / year | You paid before |
|---|---|---|---|---|
| Single coverage | $777 | $793 | $9,512 | ~$120/mo |
| Family coverage | $2,249 | $2,294 | $27,533 | ~$571/mo |
Source: Kaiser Family Foundation 2025 Employer Health Benefits Survey (average premiums $9,325 single / $26,993 family), with the statutory 2% COBRA administrative fee applied. Averages, not a quote — verify with your plan.
See your real number, side by side
Enter your COBRA rate and household income to compare COBRA against a subsidized Marketplace plan for your situation — most people are surprised which one wins.
Open the COBRA vs Marketplace CalculatorWhy COBRA feels so expensive
The sticker shock is real, and it is about who pays, not a price hike. While you were employed, the average employer covered roughly 84% of a single premium and about 74% of a family premium. That is why a single worker's paycheck deduction averaged only about $120 a month — and then became roughly $793 a month under COBRA. For one person, that is about a 6.6× jump; for a family, moving from around $571 to $2,294 a month is about 4×.
Because that new premium lands right when your income drops, COBRA can quietly become the biggest single line item shortening your runway. Fold the real figure into your budget with the Layoff Runway Calculator before you assume you can afford to keep the same plan.
The COBRA election timeline & deadlines
COBRA runs on strict deadlines. Missing one can cost you the option entirely, so map these dates as soon as your coverage ends: U.S. DOL EBSA
- 1Coverage-loss date. The day your employer plan ends (often the last day of the month of your layoff).
- 2Election notice arrives. Your plan/administrator sends a COBRA election notice, generally within about 14 days of being notified.
- 3At least 60 days to elect. You have a minimum of 60 days — measured from the later of the coverage-loss date or the notice date — to choose COBRA.
- 4Coverage is retroactive. If you elect in time, coverage applies back to the loss date, so there's no gap.
- 5Initial premium due. The first payment is generally due within 45 days after you elect, and it covers the retroactive period.
- 6Ongoing monthly payments. After that, premiums are due monthly (with a grace period, commonly 30 days).
- 7Marketplace Special Enrollment. Losing coverage also opens a Marketplace Special Enrollment Period — generally 60 days — which runs on its own clock.
Before you “wait and see”
It's tempting to hold off and elect COBRA only if you get sick, since it's retroactive. But know the trade-offs: if you do elect, you owe retroactive premiums for the whole covered period; the Marketplace enrollment window can close while you wait; and voluntarily dropping COBRA later does not always create a new Marketplace Special Enrollment Period. Decide deliberately, and confirm dates on your own notice.
COBRA vs Marketplace vs spouse's plan vs Medicaid
COBRA is one of four common paths after a layoff. None is always cheapest — the right choice depends on your income, your providers, and where you are in the plan year.
Scroll sideways to compare all options →
| Factor | COBRA | Marketplace | Spouse's plan | Medicaid / CHIP |
|---|---|---|---|---|
| Monthly premium | Full group rate (up to 102%) | Varies; subsidies possible | Their plan's dependent rate | $0 or very low if eligible |
| Income subsidies | No (unless employer subsidizes) | Premium tax credits by income | N/A | Based on low income |
| Keep your doctors | Yes — same plan/network | Depends on the plan chosen | Depends on their plan | Depends on plan/providers |
| Deductible reset | No — same plan year | Resets on a new plan | Their plan's terms | Varies |
| HSA-eligible | Only if an HDHP | Only if an HDHP chosen | Only if an HDHP | No |
| Retroactive coverage | Yes — back to loss date | Generally from enrollment | Per their plan rules | Can be retroactive if eligible |
| Enrollment deadline | ≥ 60 days to elect | 60-day Special Enrollment | Usually 30 days | Anytime if eligible |
| Often best when | Mid-year deductible met / keep network | Income dropped / want lower premium | A household plan is available | Income is low after the layoff |
General comparison, not a quote. Marketplace subsidies and Medicaid eligibility depend on your income and state. Verify at HealthCare.gov or your state marketplace. HealthCare.gov
How to pay less than full COBRA
COBRA is rarely your only option, and it is often not the cheapest. Before you elect, weigh these:
Subsidized Marketplace plan
A layoff opens a Special Enrollment Period, and lower income can unlock premium tax credits that beat full COBRA.
Spouse or partner's plan
Losing coverage is a qualifying event to join a household member's plan — often the cheapest route if available.
Use the 60-day window
COBRA is retroactive, so you can shop first and elect only if you incur medical costs during the gap.
Medicaid
If your income is low enough after the layoff, you or your children may qualify for free or low-cost coverage.
When does COBRA still make sense? Usually when you want to keep your exact doctors and network, you have already met a big chunk of your deductiblethis plan year, or you have a treatment in progress you don't want to interrupt. Compare the specifics with the COBRA vs Marketplace guide and mind your election deadline.
Three real cost scenarios
The math is personal. These three situations show how the same COBRA premium can point to different decisions — each ends with things to check, not a directive.
1. Single, hasn't met the deductible
You're early in the plan year with little spent toward your deductible, and your income just dropped.
Why it can point one way: A subsidized Marketplace plan may cost less than full COBRA, and starting a fresh deductible costs little when you've barely used the old one.
Decision checklist
- Estimate a Marketplace subsidy at your new (lower) income
- Compare the net premium to your COBRA rate
- Check whether your key doctors are in the Marketplace plan's network
2. Family that has already met most of the deductible
It's late in the plan year and your family has already paid most of a high deductible and out-of-pocket max.
Why it can point one way: COBRA keeps the same plan, so the deductible you already met carries through — switching plans would reset it to zero.
Decision checklist
- Add up what you'd re-pay if the deductible resets on a new plan
- Weigh that against COBRA's higher monthly premium
- Confirm your COBRA end date and the next plan-year reset
3. In active treatment, needs network continuity
You or a dependent is mid-treatment with specific specialists, and continuity of care matters most.
Why it can point one way: COBRA keeps your exact plan, network, and prior authorizations intact, which a new plan may not match.
Decision checklist
- Confirm your providers and prescriptions stay covered under each option
- Check whether a Marketplace plan includes the same specialists
- Value COBRA's continuity against the premium difference
Run your own numbers side by side:
Open the COBRA vs Marketplace CalculatorRelated LayoffNext Tools
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Frequently asked questions
How much does COBRA cost per month?+
What is the COBRA 102% rule?+
Why is COBRA so expensive?+
Is COBRA cheaper than a Marketplace plan?+
How can I lower my COBRA cost?+
Do I have to pay COBRA back to my last day of work?+
How long can I keep COBRA and does the cost change?+
Sources & methodology
Cost figures are national averages from the KFF 2025 Employer Health Benefits Survey with the 2% COBRA administrative fee applied ($9,325 × 102% ÷ 12 ≈ $793 single; $26,993 × 102% ÷ 12 ≈ $2,294 family). They are illustrations, not quotes — your COBRA election notice states your exact rate. Legal timelines reflect general federal COBRA rules; your plan documents and notice control.
- 2025 Employer Health Benefits Survey — Summary of Findings — KFF (Kaiser Family Foundation)Average annual employer-plan premiums: $9,325 single, $26,993 family (latest national benchmark). · Last verified Jul 23, 2026
- COBRA Continuation Coverage — U.S. Department of Labor, Employee Benefits Security AdministrationThe up-to-102% rule, the 60-day election window, and premium-payment timelines. · Last verified Jul 23, 2026
- Losing job-based coverage (COBRA & Marketplace) — HealthCare.govMarketplace Special Enrollment Period and how COBRA interacts with Marketplace coverage. · Last verified Jul 23, 2026
Important disclaimer
This guide is educational only and is not insurance, tax, or legal advice. COBRA costs, deadlines, and eligibility depend on your specific plan and circumstances, and premiums change each plan year. The figures here are averages, not a quote — confirm your exact rate on your COBRA election notice and verify Marketplace options at HealthCare.gov or your state marketplace. See our full disclaimer.
Deepak Middha is the founder of LayoffNext and a Chartered Accountant (ICAI, India). A U.S. immigrant with nearly 20 years of experience — and 17 years in hedge fund and private equity administration, including as Vice President of Fund Accounting at NAV Fund Administration Group and Associate Director of Private Equity and Real Estate at SS&C Technologies — he builds free, plain-language layoff tools and guides for employees, H-1B workers, and immigrant families.