COBRA cost formula
Estimated COBRA premium = full employer plan premium + up to a 2% administrative fee. While working, your employer may have paid a large share of the premium. After the qualifying event, you may be responsible for the full cost.
Use the COBRA cost calculatorTry a quick COBRA vs Marketplace scenario
Move the sliders below to test how coverage months and expected medical bills can change the COBRA vs Marketplace decision.
Sample COBRA cost scenarios
| Scenario | What to compare | Why it matters |
|---|---|---|
| Single adult | COBRA premium vs subsidized Bronze/Silver Marketplace premium | Marketplace subsidies may lower monthly cost |
| Family coverage | Total household premium and family deductible | Family COBRA premiums can be much higher than an individual plan |
| Already met deductible | Deductible progress and out-of-pocket maximum | COBRA may save money if a Marketplace deductible would reset |
| Upcoming surgery | Network, authorization, and out-of-pocket maximum | Keeping the employer plan can reduce risk |
What drives your final COBRA cost?
- The full monthly employer group health plan premium.
- Whether your employer pays any COBRA months as part of severance.
- How many months you need coverage.
- How much deductible and out-of-pocket progress you already have.
- Whether a Marketplace plan would cover your doctors and prescriptions.
How to lower your total cost
Compare COBRA against Marketplace plans before the enrollment deadline. If Marketplace coverage is cheaper, check doctors, prescriptions, plan start date, deductibles, and eligibility for Premium Tax Credits before declining COBRA.
Official sources used
This educational guide links to official federal resources so readers can verify the COBRA and Marketplace rules before making coverage decisions.
Frequently asked questions
Why is COBRA often expensive?
COBRA can require you to pay the full employer group health plan premium plus an administrative fee, instead of only the employee share you paid while working.
Can Marketplace coverage be cheaper than COBRA?
Yes. Marketplace plans may be cheaper if you qualify for Premium Tax Credits, but you should compare deductibles, networks, prescriptions, and out-of-pocket maximums.
Can I choose Marketplace instead of COBRA?
In many job-loss situations, losing job-based coverage creates a Special Enrollment Period for Marketplace coverage. Confirm your deadline on HealthCare.gov or your state Marketplace.