COBRA lets someone who loses employer coverage keep the same group health plan for a limited time — but they pay the entire premium themselves, including the share an employer used to cover.
How it works
The full premium — the employee’s old paycheck deduction plus the employer’s previously hidden contribution — is added together, then increased by up to 2% for administration. Losing a job commonly means losing an unseen subsidy as well as a paycheck, which is why COBRA premiums often come as a shock even to someone who knew their old deduction exactly.
The disability extension exception
For qualified beneficiaries receiving an 11-month disability extension of COBRA coverage, the premium cap for those additional months rises to 150% of the plan’s full cost instead of the standard 102%.
How to use this calculator
- Enter what was deducted from your pay and what your employer contributed on your behalf.
- Indicate whether the disability extension applies.
Frequently asked questions
How do I find out what my employer was contributing?
HR or a benefits administrator can provide the full premium amount — it’s not usually visible on a regular pay stub, which only shows the employee’s own deduction.
How long does COBRA coverage last?
Typically 18 months for a job loss, with some qualifying events extending it further — the length depends on the specific qualifying event.
Is COBRA always the cheapest option after losing a job?
Not necessarily — Health Insurance Marketplace plans, especially with subsidies, are often worth comparing directly against the COBRA premium.
