COBRA Cost Calculator

When Priya left her job, she assumed her health insurance would cost about what it always had: $180 a month, the amount that came out of her paycheck. Then the COBRA election notice arrived. The number on it was $742 a month for the exact same plan. Same doctor, same coverage, same card in her wallet, and suddenly more than four times the price. The math nobody explains until you're out the door had finally caught up with her.

Here's what was actually happening all along. Your employer pays the majority of your health premium, often 70 to 80% of the total. The $180 leaving your paycheck was only your share. The plan's true cost was closer to $727, with your employer quietly covering $547 of it as a benefit. COBRA lets you keep the same plan, but now you pay the entire premium yourself, both your old share and the employer's share, plus an administrative fee of up to 2%. That's how $180 becomes $742.

The full formula is simple once you see it: (your share + employer share) × 1.02. By law, COBRA can charge up to 102% of the plan's full cost. For a family plan, where the total premium can run $2,000 a month or more, the COBRA bill can exceed $2,040, an amount that catches countless families off guard during an already stressful transition.

The one piece of good news is duration. For job loss, COBRA continuation is available for up to 18 months. That gives you a real bridge, but at full price, an 18-month bridge for a family can total over $36,000. Knowing that number changes how you budget your severance and how hard you look at alternatives.

This calculator shows you the real COBRA bill before the notice arrives. Enter your monthly premium share, your coverage tier, and how long you'll need the bridge, and see the full monthly cost and total over your COBRA window, so the $742 isn't a shock you discover after you've already quit.