COBRA Health Insurance Payment Calculator

A COBRA health insurance payment calculatoris a financial tool that estimates the cost of continuing your employer-sponsored health insurance after a qualifying event. COBRA (Consolidated Omnibus Budget Reconciliation Act) allows you to keep your employer's group health plan for a limited period after losing your job, having your hours reduced, or experiencing certain family events. However, you must pay the full premium(your portion plus what your employer was paying) plus a small administration fee (up to 2%). This calculator takes your employee-paid premium, your employer's contribution percentage, and the admin fee to compute your COBRA monthly premium and total costs over 18, 29, or 36 months - and compares it against marketplace (ACA) plan costs to help you choose the most affordable coverage option.

1. Enter your current coverage details:Start with the monthly premium amount you paid while employed — this is typically listed on your pay stub as the employee contribution to health insurance. Enter the percentage your employer was contributing (commonly 50-80% of the total premium), and the COBRA administration fee (legally capped at 2% of the total premium, though some plans charge less). The calculator adds your premium, the employer contribution, and the admin fee to determine your full COBRA monthly premium.
2. Select your COBRA duration: Choose from three possible durations based on your qualifying event: 18 months (standard coverage for voluntary or involuntary job loss or hours reduction), 29 months(extended coverage if you or a family member qualifies for Social Security Disability within the first 60 days), or 36 months (extended coverage for family events: death of the covered employee, divorce/legal separation, or loss of dependent child status). The calculator shows the total cost for each duration simultaneously.
3. Compare against marketplace plans: Enter an estimated monthly premium for an ACA marketplace plan (Silver or Bronze tier from Healthcare.gov or your state exchange). The calculator shows a side-by-side cost comparison for monthly and total costs over your selected duration, with a clear savings indicator showing whether COBRA or the marketplace plan is cheaper for your situation.

• Full Premium Payment: While employed, you typically pay only a portion of your health insurance premium (your employer subsidizes the rest). Under COBRA, you must pay the full premium- your portion plus your employer's portion - because your employer is no longer subsidizing your coverage. This is why COBRA is significantly more expensive than what you paid while working, even though it's the same health plan.
• Administration Fee: COBRA plans can charge up to 2% of the total premium to cover administrative costs of maintaining your coverage. This fee is added to the full premium amount. Some employers may charge less or waive the fee entirely. The 2% maximum is set by federal regulation and applies to all COBRA-qualified plans.
• Qualifying Events:COBRA coverage is triggered by specific events: voluntary or involuntary job loss (except for gross misconduct), reduction in work hours, the covered employee's death, divorce or legal separation, loss of dependent child status, or the employee becoming eligible for Medicare. Different qualifying events result in different maximum coverage durations.
• 60-Day Election Period: You have 60 days from the later of your qualifying event date or the date your COBRA election notice is sent to decide whether to elect COBRA coverage. If you decline COBRA during this period, you cannot change your mind later. COBRA coverage is retroactive to the qualifying event date if you elect it within the 60-day window.

When deciding between COBRA and an ACA marketplace plan, consider these factors beyond just the monthly premium. COBRA advantages: You keep your same doctors, same prescription drug coverage, same network, and same deductible/out-of-pocket progress. There is no enrollment period restriction - you can elect COBRA at any time after a qualifying event. Marketplace advantages: You may qualify for premium tax credits based on your income (COBRA premiums are not subsidized), marketplace plans may have lower premiums for comparable coverage, and open enrollment or special enrollment periods provide flexibility. Use this COBRA calculator to compare the raw costs, then factor in whether you have already met your health plan deductible for the year (which carries over under COBRA but resets with a new marketplace plan), whether your preferred doctors are in-network on marketplace plans, and whether your income qualifies you for subsidies. All calculations run locally in your browser - no data is uploaded to any server.