2026 COBRA cost calculator

Why COBRA costs so much more

While you work, your employer usually pays a large part of your premium and you may never see that number. After you leave, COBRA lets you stay on the same plan, but you can be charged the whole premium plus an administrative charge, up to 102 percent of what the coverage costs the plan. In the starting example, a worker paying $150 a month on a $700 plan would pay up to $714, or $564 more each month.

That 102 percent is the legal ceiling. Your election notice shows the real figure. Plans may charge up to 150 percent during an 11-month disability extension, which this calculator does not model.

Who qualifies, and for how long

COBRA generally covers private employers with 20 or more employees, along with most state and local government plans. After a job ends for any reason other than gross misconduct, or after your hours are cut, coverage can last 18 months. Smaller employers fall outside the federal law, though many states have similar rules, often called mini-COBRA, and your state insurance commissioner's office can tell you what applies.

The deadlines that protect you

You get at least 60 days to decide whether to enroll, and at least 45 days after that to make your first payment. Miss that payment and the plan can end your coverage. Some people hold off during the election window to see whether they need care, but coverage may not be active until the premium is paid, so ask your plan how enrolling late would work before you count on it.

Compare COBRA with a Marketplace plan before you decide. You can apply at HealthCare.gov even if you qualify for COBRA, and you may qualify for tax credits there. You generally need to choose a Marketplace plan within 60 days of losing job-based coverage. Your premium is only part of the comparison: staying on COBRA keeps the deductible progress you have made this year, while a new plan usually starts over.

To find the full premium, ask HR, or look at Box 12, code DD, on your W-2, which generally shows both shares for the year. Employers filing fewer than 250 W-2s can skip that box, so it may be blank. Planning a layoff budget? The severance pay calculator shows what you will have coming in.