Health & Medicare
COBRA Insurance Cost Calculator
Estimates based on the federal COBRA statute and CMS/DOL guidance, updated August 2026.
See what continuing your employer health plan under COBRA will actually cost, the full premium plus the 2% administrative fee federal law adds.
Data sourced from 29 U.S. Code Section 1162(3), CMS/DOL COBRA guidance
Your new monthly COBRA premium
$0
How this is calculated
Source: 29 U.S. Code Section 1162(3) (102% rule), CMS/DOL COBRA guidance (coverage duration) · Last updated 2026-08-19 · See how we calculate this →
Why COBRA costs so much more than your old paycheck deduction
COBRA lets you keep your exact same employer health plan after a qualifying event like job loss, but it changes who pays for it. While you were employed, your employer was almost certainly covering a large share of the premium behind the scenes, so the number that came out of your paycheck was never the full cost of your coverage.
Under COBRA, you take over the entire premium yourself, your old payroll deduction plus the share your employer used to quietly cover.
On top of that, federal law allows the plan to charge you up to 102% of the full premium, the extra 2% is a standard administrative fee written into the statute itself (29 U.S. Code Section 1162(3)), not a markup the plan administrator invented.
That is why COBRA premiums often come as a shock: it is not that your health plan suddenly got more expensive, it is that you are now paying the true cost of it for the first time.
If you do not already know what your employer was contributing, you can find it on your W-2. Box 12, Code DD shows the total annual premium your employer reported to the IRS for your coverage that year.
Subtract what you personally paid in payroll deductions over the same period and divide the remainder by 12 to estimate your employer's former monthly share. Your HR or benefits department can also give you this figure directly, and COBRA election paperwork is required to state the exact premium amount.
How long you can stay on COBRA depends on why your coverage ended. Job loss or a reduction in hours, the most common triggers, qualify you for up to 18 months of continuation coverage.
Certain other events, the death of the covered employee, divorce or legal separation, or a dependent aging off the plan, can extend a dependent's eligibility up to 36 months. These windows are set by federal law, not by the employer or insurer.
Because COBRA can be expensive, it is worth comparing it against ACA marketplace coverage before you elect it, especially if your income dropped enough after job loss to qualify for a premium tax credit.
COBRA guarantees you keep your exact same doctors, network, and plan design, which the marketplace does not always match, but that continuity has a real price attached to it.
Frequently asked questions
Why is COBRA so much more expensive than my premium was at work?
While employed, your employer typically covers a large share of the premium behind the scenes, you only see your payroll deduction. Under COBRA you take over the full premium, both your old share and your employer's former share, plus a 2% administrative fee.
Is the 2% administrative fee always exactly 2%?
Federal law caps it at 2% of the full premium in most cases (a longer disability extension can allow up to 50% in that specific period). This tool models the standard 102% case.
How long can I stay on COBRA?
Job loss or a reduction in hours qualifies you for up to 18 months. Certain other events, like the covered employee's death, divorce, or a dependent aging off the plan, can qualify a dependent for up to 36 months.
How do I find out what my employer was actually paying?
Box 12, Code DD on your W-2 shows the total annual premium your employer reported to the IRS for your coverage. Subtract what you personally contributed over the year and divide by 12 to estimate your employer's former monthly share, or simply ask your HR or benefits department.