# How much is COBRA a month?

Asked by: Charlene Bergnaum  |  Last update: February 9, 2022

On Average, The Monthly COBRA Premium Cost Is \$400 – 700 Per Person. Continuing on an employer's major medical health plan with COBRA is expensive. You are now responsible for the entire insurance premium, whereas your previous employer subsidized a portion of that as a work benefit.

## How do you calculate COBRA cost?

Sample Calculation
1. Your contribution: \$125 per paycheck X 2 = \$250 per month.
2. Your employer's contribution: \$400 per month.
3. Total contribution: \$250 + \$400 = \$650 per month.
4. Service charge: \$650 x 2% (or 0.02) = \$13 per month.
5. COBRA premium: \$650 + \$13 = \$663 per month.

## What is the average cost of COBRA insurance?

COBRA costs an average of \$599 per month. An Obamacare plan of similar quality costs \$462 per month—but with the government subsidies available, the average cost of an Obamacare plan on HealthSherpa is less than \$10 per month.

## Is it worth getting COBRA insurance?

COBRA provides a good option for keeping your employer-sponsored health plan for a while after you leave your job, but the cost can be high. Make an informed choice by looking at all your options during the 60-day enrollment period, and don't focus on the premium alone.

## Can I use COBRA for just one month?

COBRA lets you keep your employer's plan for a set amount of time, usually anywhere from 18 months to 36 months. The caveat is that your employer no longer pays for their portion of the plan, so you need to pay the health insurance premiums independently.

## How To Figure COBRA Costs - W/O Calling HR

35 related questions found

### Is COBRA cheaper than individual insurance?

Is COBRA cheaper than individual insurance? COBRA health insurance is usually more expensive than individual insurance, especially if you qualify for ACA plan subsidies. ACA subsidies reduce the cost of ACA plans. The subsidies are only eligible for ACA plans.

### Are COBRA payments tax deductible?

Premiums for COBRA insurance are tax deductible, as they are paid entirely by you on an after-tax basis. If you buy medical coverage through an insurance marketplace, then premiums would be tax deductible as a medical expense.

### Why is COBRA coverage so expensive?

The cost of COBRA coverage is usually high because the newly unemployed individual pays the entire cost of the insurance (employers usually pay a significant portion of healthcare premiums for employees).

### Can I cancel COBRA mid month?

You can cancel the COBRA coverage at any time within 18 months. ... You will likely want to drop COBRA once you become eligible for a different health plan, such as if you get another job. If you stop paying premiums, COBRA coverage will end automatically. Make sure to pay your premiums promptly.

### How much is Obamacare per month?

The cost of Obamacare can vary greatly depending on the type of plan you are looking for and what state you currently live in. On average, an Obamacare marketplace insurance plan will have a monthly premium of \$328 to \$482.

### How can I get help with COBRA payments?

They can tell you whether you are eligible for COBRA or Cal-COBRA continuation coverage and the subsidies. You can also contact the Department of Managed Health Care's Help Center by calling 1-888-466-2219 or by visiting the Department's website and completing the Contact Form.

### Does COBRA include prescription coverage?

Yes, COBRA Covers Pharmacy Prescriptions, If You Had That Coverage Previously. ... The COBRA law allows you and your dependents to continue on the exact same coverage that you had with the employer's group health plan. Nothing changes in regards to your medication.

### How can I avoid paying COBRA?

If you want to avoid paying the COBRA cost, go with a short-term plan if you're waiting for approval on another health plan. Choose a Marketplace or independent plan for broader coverage. Choose a high-deductible plan to keep your costs low.

### Is COBRA the most expensive health insurance?

COBRA insurance is often more expensive than marketplace insurance, partly because there isn't any financial assistance from the government available to help you pay those COBRA premiums.

### How long can you be on COBRA?

Q11: How long does COBRA coverage last? COBRA requires that continuation coverage extend from the date of the qualifying event for a limited period of 18 or 36 months.

### Does my W2 show how much I paid for health insurance?

Your health insurance premiums paid will be listed in box 12 of Form W2 with code DD.

### How does Cobra insurance work if I quit my job?

Electing COBRA means you can keep your health insurance after quitting or being fired from a job. You are responsible for paying your premium and the employer's premium, plus a 2% admin fee. Coverage is available for up to 18 months, but an extension may be possible.

### Is it better to pay for health insurance before or after taxes?

The main difference between pretax and after-tax medical payments is the treatment of the money used to purchase your coverage. Pretax payments yield greater tax savings, but after-tax payments present more opportunities for deductions when you file your tax return.

### Can I apply for COBRA If I quit my job?

Yes, You Can Get COBRA Insurance After Quitting Your Job

According to the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), companies with 20 or more employees are required to allow workers to keep their health insurance coverage, if that coverage would end due to a qualifying event.

### Can I keep my insurance if I quit my job?

You may be able to keep your job-based health plan through COBRA continuation coverage. COBRA is a federal law that may let you pay to stay on your employee health insurance for a limited time after your job ends (usually 18 months). You pay the full premium yourself, plus a small administrative fee.

### Does COBRA coverage begin immediately?

How long does it take for COBRA to kick in? With all paperwork properly submitted, your COBRA coverage should begin on the first day of your qualifying event (for example, the first day you are no longer with your employer), ensuring no gaps in your coverage.

### Is COBRA extended due to Covid?

Soon after the COVID-19 pandemic shut down the nation, the federal government extended the deadlines for electing COBRA and paying COBRA premiums for continuation of health insurance coverage. ... The first COBRA premium is due 45 days after the initial election is made.

### Do employers have to pay for COBRA?

(California passed a similar law known as “Cal-COBRA.”) Under COBRA, the group plan health insurance plan made available to terminated workers provides the exact same benefits as they would receive if they were still a member of the group, except that the employees have to pay the employer's cost of providing the ...

### Does health insurance end the day you quit?

Although there are no set requirements, most employer-sponsored health insurance ends on the day you stop working or at the end of the month in which you work your last day. Employers set the guidelines for when employer-sponsored health coverage ends once you resign or are terminated.