How much does COBRA cost, and is it worth it?
COBRA does not add a new charge, it removes the discount you had as an employee. You pay the health plan's full cost, your old payroll deduction plus the (usually larger) share your employer covered, plus up to a 2% administrative fee, for a maximum of 102% of the total premium. Using 2025's national average group premium, that works out to about $793 a month for single coverage and $2,294 a month for family coverage. Because losing a job also opens a 60-day Special Enrollment Period on the ACA marketplace, where an income-based subsidy can cut the price further, a marketplace plan is frequently the cheaper option.
This page is about the number on the bill and the choice it forces. For how COBRA works, who qualifies, and the full qualifying-event chart, see what is COBRA insurance.
How much does COBRA cost per month?
Federal law caps a COBRA premium at 102% of what the plan actually costs to run, not what you paid while you were on the payroll. That 102% is 100% of the premium (your old share plus your employer's old share) plus up to a 2% fee the plan is allowed to charge for administering continuation coverage.
Nationally, the 2025 KFF Employer Health Benefits Survey, the most recent full release as of this writing, puts the average group premium at $777 a month for single coverage and $2,249 a month for family coverage. At the 102% cap, that is a maximum COBRA bill of about $793 a month for one person and $2,294 a month for a family. Your own bill will be based on your specific former employer's plan, not this national average. Federal law requires your plan administrator to state the exact dollar premium in the COBRA election notice you receive, so treat these figures as a planning benchmark, not your actual invoice.
Why is COBRA so much more expensive than what you paid as an employee?
Because your employer was quietly covering most of the bill. The same 2025 KFF survey shows covered workers pay, on average, only 16% of the premium for single coverage ($1,440 a year, about $120 a month) and 26% of the premium for family coverage ($6,850 a year, about $571 a month). Your employer covered the rest, 84% and 74% respectively, as an employment benefit you never saw itemized.
COBRA removes that employer contribution entirely and adds the 2% fee on top. That is the whole mechanism, there is no separate "COBRA markup" beyond the fee; it is simply the subsidy disappearing. The jump is large in dollar terms precisely because the subsidy was large:
| Component | Single coverage | Family coverage |
|---|---|---|
| Full monthly premium (employer + employee share) | $777 | $2,249 |
| What you paid as an employee (16% / 26%) | $120 | $571 |
| What your employer covered (84% / 74%) | $657 | $1,679 |
| Maximum COBRA premium (102% of full cost) | $793 | $2,294 |
| Increase over your old employee cost | +$673/mo (about 561%) | +$1,723/mo (about 302%) |
Source: KFF, "2025 Employer Health Benefits Survey, Summary of Findings" (average annual premiums and worker contribution rates); COBRA's 102% cap per the U.S. Department of Labor.
How long do you have to decide, and how long does COBRA last?
You get a 60-day election window, starting on the later of the day your old coverage ends or the day your plan sends the COBRA election notice. You do not have to pay right away to hold your spot, but if you elect and pay, coverage is retroactive to the day the old plan lapsed, so there is no gap in coverage.
For the most common qualifying event, a job loss or a cut in hours, coverage lasts up to 18 months. Other qualifying events (divorce, a covered worker's death, a dependent aging off the plan) can run to 36 months, and a Social Security disability determination can extend an 18-month period to 29 months at up to 150% of the premium during the extension. The full chart of qualifying events and maximum lengths is on what is COBRA insurance; this page assumes the common case, a job loss with an 18-month maximum.
Is COBRA worth it, or should you get an ACA marketplace plan instead?
Price it before you assume either answer. Losing job-based coverage is itself a qualifying event that opens a 60-day Special Enrollment Period on the ACA marketplace, so you are never limited to COBRA as your only option. A marketplace plan often ends up cheaper than COBRA for two separate reasons, not one:
- You can choose a cheaper plan design. COBRA locks you into your exact old plan. The marketplace lets you pick a lower metal tier, including a Bronze or HSA-eligible plan (see is an HDHP worth it), if a lower premium matters more to you than your old plan's design.
- Your income just dropped, and subsidies are income-based. COBRA has no subsidy at any income level. A marketplace premium tax credit is scaled to your household income, so people who never qualified for a credit while employed often qualify the moment their paycheck stops. For 2026, that credit still phases out entirely above 400% of the federal poverty line (the "subsidy cliff"); see how ACA marketplace insurance works for the full income-to-subsidy schedule and a worked example.
The case for COBRA is continuity, not price: if you are mid-treatment with a specific doctor or hospital, or you have already met this year's deductible, keeping the identical plan and network can be worth paying more.
| Factor | COBRA | ACA marketplace plan |
|---|---|---|
| Monthly cost | Up to 102% of your old full premium (2025 avg: $793 single / $2,294 family) | Priced independently of your old plan; no employer link at all |
| Income-based subsidy | None, at any income | Premium tax credit possible up to 400% FPL (2026) |
| Network and doctors | Identical to your old employer plan | May differ; confirm your providers are in-network first |
| Plan choice | None, only your exact former plan | Any Bronze/Silver/Gold/Platinum plan sold in your area |
| Enrollment window | 60 days from coverage loss or election notice | 60-day Special Enrollment Period from coverage loss |
| Coverage length | Up to 18 months for job loss (more for other events) | Ongoing; renews each plan year, not time-limited |
| Best fit when | Mid-treatment with a specific provider, or deductible already met | Cost matters most, or your lower post-job income qualifies for a subsidy |
Source: U.S. Department of Labor (COBRA cost cap, election window, duration); HealthCare.gov (Special Enrollment Period rules); KFF 2025 Employer Health Benefits Survey (premium averages). This is general information, not personalized advice; price both options for your own plan and income before deciding.
Can you switch from COBRA to a marketplace plan later?
Sometimes, and the rule catches people off guard. If you let your COBRA coverage run its full course and it naturally exhausts (for example, the 18 months end), that expiration is itself a qualifying event, and you get a new 60-day Special Enrollment Period to enroll in a marketplace plan. The same is true if your COBRA ends involuntarily, such as your former employer dropping the plan.
But if you elect COBRA and then simply decide, mid-course, that it is too expensive and you would rather switch, voluntarily dropping COBRA outside of Open Enrollment does not open a Special Enrollment Period on its own. Your one guaranteed exit ramp before COBRA naturally ends is the marketplace's annual Open Enrollment window; outside that window, you generally need a separate qualifying event to switch early. This is exactly why it pays to compare COBRA and marketplace pricing before you elect COBRA in the first place, not after.
The flat truth
COBRA's price is not a penalty, it is the real, unsubsidized cost of the coverage you already had, and for most people that number is genuinely large: national averages put it near $793 a month for one person and $2,294 a month for a family in 2025 data. It buys you one specific thing well, continuity with your exact plan and network, and it does not get cheaper based on your income. A marketplace plan, priced separately and often backed by a subsidy on your new, lower income, frequently wins on cost. Price both inside your 60-day windows, before you elect either one, because switching later is harder than choosing correctly up front.
Sources
- The 102% premium cap (100% of cost plus up to a 2% administrative fee), the 60-day election period, the 18-month standard maximum, and the 150% disability-extension cap: U.S. Department of Labor, "An Employee's Guide to Health Benefits Under COBRA" (PDF).
- COBRA continuation coverage overview and FAQs: U.S. Department of Labor, "FAQs on COBRA Continuation Health Coverage for Workers".
- 2025 average annual group health premiums ($9,325 single / $26,993 family) and average worker contribution rates (16% single / 26% family): KFF, "2025 Employer Health Benefits Survey, Summary of Findings" (PDF).
- Losing job-based coverage as a Special Enrollment Period qualifying event, the 60-day marketplace enrollment window, and COBRA exhaustion as a separate qualifying event: HealthCare.gov, "COBRA coverage when you're unemployed" and HealthCare.gov, "Getting health coverage outside Open Enrollment".
- Voluntarily dropping COBRA outside Open Enrollment does not trigger a new Special Enrollment Period, except during the marketplace's annual Open Enrollment itself: KFF, "I have COBRA, but it's too expensive. Can I drop it during Marketplace Open Enrollment...?".
- The 2026 premium tax credit's 400% FPL subsidy cliff: CobaltProsper, "How ACA marketplace health insurance works", citing IRS Revenue Procedure 2025-25 and HHS ASPE poverty guidelines.