Updated · Built and checked by the PlinzoTools team, formulas tested against published sources
Estimate your monthly COBRA health insurance cost from the full premium and the legally allowed administrative fee.
Under COBRA, a former employer can charge up to 102% of the full health insurance premium (the employer's share plus your own payroll-deducted share, combined) -- the extra 2% is the legally allowed administrative fee. This tool calculates full premium × (1 + admin fee %).
Enter the full monthly premium (ask your HR/benefits team for this -- it's the combined employer + employee cost, not just what was deducted from your paycheck) and the administrative fee percentage (2% is the standard legal maximum). Your estimated COBRA monthly cost appears instantly.
The estimator takes the full monthly premium, multiplies by one plus the administrative fee percentage, and shows the result as your monthly COBRA cost. Because the fee box is editable, you can enter 2 for the standard maximum, or a different value if your notice states one. Entering zero shows the bare premium with no fee. The tool works per month; multiply the result by the number of months you expect to be covered to see a longer-term cost.
Monthly COBRA cost = full monthly premium x (1 + admin fee percent / 100)
Suppose your coverage costs a combined 700 per month, made up of 500 paid by the employer and 200 deducted from your paycheck. On COBRA, the base is 700, not 200. With a 2 percent fee, the monthly cost is 714. Over 6 months that is 4,284. Someone who focused only on the 200 payroll deduction would underestimate the cost by more than three times, which is the most common surprise.
COBRA has election windows and premium payment deadlines that are set by the plan notice and federal rules, and missing them can end coverage. Verify the deadlines in your notice or with the plan administrator; this calculator does not track dates. Coverage can generally be retroactive to the date employer coverage ended if you elect and pay in time, which means you may owe several months of premium at once, so multiplying the monthly figure by the months in question is useful.
COBRA is one option, not the only one. Losing employer coverage is generally a qualifying event for a special enrollment period on the health insurance marketplace, and a new employer plan or a spouse's plan may also be available. Compare the estimated COBRA monthly cost from this tool with the premium, deductible and network of other options. Consider whether staying with your current plan matters because of an ongoing treatment, deductible already met this year, or your doctors' network status. Marketplace subsidies depend on income and other factors, and this tool does not estimate them.
For questions about eligibility or rights, contact the plan administrator or the U.S. Department of Labor.
While employed, your employer typically covers a large share of the premium -- COBRA requires you to pay the full combined premium (both shares) plus the admin fee, which is often several times what was deducted from your paycheck.
No. If the amount in your notice already includes the fee, enter that amount and set the fee field to zero.
No. It only calculates a monthly cost. Coverage length depends on the qualifying event and plan rules, so check your notice.
If you elect coverage after a gap and pay in time, coverage can reach back to the day employer coverage ended, so back premiums may be due. Multiply the monthly estimate by the months involved.
No. Marketplace plans, a spouse's plan or a new employer's plan may be alternatives. Compare total costs and networks.
Reference: U.S. Department of Labor