How Much Does COBRA Cost Per Month?
Average COBRA cost: $700–$900/month for individuals, $1,800–$2,500/month for families. You pay 100% of the premium your employer used to subsidize plus a 2% administrative fee. This guide breaks down COBRA costs by coverage type and state, explains why it’s so expensive, and compares ACA alternatives that save 60–80%.
Compare COBRA Alternatives ↓How COBRA Pricing Works
When you had employer health insurance, your company paid 70–85% of the monthly premium. You only saw the employee share on your paycheck — typically $150–$300/month for individual coverage or $400–$700/month for family coverage. Those numbers felt manageable because your employer was quietly paying $400–$1,500/month on top of your share.
With COBRA, that employer subsidy vanishes completely. You now pay the entire premium — your share plus what your employer was paying — plus an additional 2% administrative fee. This is why COBRA sticker shock hits so hard: you’re seeing the true cost of employer health insurance for the first time.
Your employer is required by federal law to send you a COBRA Election Notice within 14 days of your qualifying event (job loss, hour reduction, etc.). This notice shows your exact monthly COBRA premium. Many people open this letter and immediately start looking for alternatives — which is exactly the right instinct.
Average COBRA Cost by Coverage Type
Based on the Kaiser Family Foundation 2025 Employer Health Benefits Survey (the most comprehensive employer insurance cost study, adjusted for 2026):
Individual COBRA Coverage
Average monthly premium: $700–$900 (you pay all of it plus 2% admin). Range: $500/month (small employer, limited plan) to $1,200/month (large employer, PPO plan with rich benefits). Your employer was previously paying approximately $550–$750/month of this. Your employee share was $150–$300/month. Now you pay the full $700–$900.
Individual + Spouse COBRA Coverage
Average monthly premium: $1,400–$1,800. Two adult members on the same plan. Annual cost: $16,800–$21,600. This is more than a used car, a year of community college tuition, or a down payment savings contribution.
Family COBRA Coverage
Average monthly premium: $1,800–$2,500. Two adults plus children. Annual cost: $21,600–$30,000. At the high end, COBRA family coverage costs more per year than many families spend on their mortgage. This is the primary reason most families explore ACA alternatives immediately. See cheaper alternatives →
COBRA Costs by State
COBRA costs vary by state because underlying healthcare costs and employer plan pricing differ regionally:
Most Expensive States for COBRA
New York: Average COBRA individual $850–$1,100/month. Family: $2,000–$2,800/month. New York has among the highest healthcare costs in the nation, and employer plans in New York reflect this.
Massachusetts: $800–$1,050/month individual. Connecticut: $800–$1,000. Alaska: $900–$1,200 (highest healthcare costs per capita).
Moderate Cost States
Texas: $650–$850/month individual. Florida: $700–$900. Georgia: $650–$800. North Carolina: $600–$800. These states track closer to the national average.
Least Expensive States for COBRA
Mississippi: $550–$700/month individual. Arkansas: $500–$700. Alabama: $550–$700. Lower cost of living and healthcare costs translate to lower employer plan premiums and therefore lower COBRA costs. But even in these states, COBRA is typically 2–4x more expensive than subsidized ACA alternatives.
Why Is COBRA So Expensive?
COBRA is expensive because you’re paying the full, unsubsidized cost of employer group health insurance for the first time. There is no government subsidy, no employer contribution, and no marketplace negotiation. You pay retail plus a markup.
No Employer Subsidy
Employers subsidize 70–85% of premiums for active employees. This subsidy is a form of compensation — part of your total pay package. When employment ends, so does the subsidy. You’re now paying the employer’s share too.
The 2% Administrative Fee
Federal law allows employers (or their plan administrators) to charge a 2% administrative surcharge on top of the full premium. This covers the cost of maintaining your enrollment after employment ends. On a $900/month premium, that’s an extra $18/month — not huge, but adding insult to injury.
No ACA Subsidy Eligibility
COBRA premiums are not eligible for ACA premium tax credits. Even if your income would qualify you for substantial subsidies on a Marketplace plan, those subsidies cannot be applied to COBRA. This is the single biggest reason ACA alternatives are cheaper: the government helps pay for ACA coverage but does not help pay for COBRA.
Group Plan Pricing vs. Individual Market
Employer group plans price based on the entire employee population — including older, sicker workers who drive up the average cost. ACA individual plans price based on your specific age (not the group average) and can be dramatically cheaper for younger, healthier individuals. A 30-year-old paying $850/month for COBRA might pay $0–$200/month for an ACA plan with subsidies.
ACA Marketplace: The Cheaper Alternative
Losing employer health coverage is a qualifying life event that triggers a 60-day Special Enrollment Period on the ACA Marketplace. You can enroll in a Marketplace plan immediately — no need to wait for Open Enrollment. Here’s how ACA compares to COBRA:
Side-by-Side Comparison
COBRA individual: $700–$900/month. No subsidy. Same employer plan. Same network. ACA Silver with subsidies: $0–$300/month for most people. Subsidy based on income. Major carrier networks (Cigna, UHC, BCBS, Ambetter). Pre-existing conditions covered.
Savings: ACA is typically 60–80% cheaper than COBRA for the same or comparable coverage. A family paying $2,000/month for COBRA might pay $200–$500/month for ACA Silver with subsidies. That’s $1,500–$1,800/month in savings — $18,000–$21,600/year.
When COBRA Still Makes Sense
COBRA is the better choice in limited situations: you’re mid-treatment with a specialist who isn’t in any ACA plan network, you’ve already met your annual deductible for the year (resetting on ACA wastes what you’ve paid), or you earn too much for ACA subsidies AND your employer plan has significantly better benefits than available Marketplace plans. For the vast majority of people, ACA is the financially superior choice. Compare your options →
COBRA Deadlines and Duration
Election Deadline
You have 60 days from receiving the COBRA Election Notice to elect coverage. If you elect, coverage is retroactive to the date you lost employer coverage — there’s no gap. You must pay all premiums retroactively for the coverage period.
Duration
18 months for job loss or reduction in hours (most common). 36 months for divorce, dependent aging out, or employee death. 29 months if you become disabled within 60 days of the qualifying event (11-month extension).
Payment Deadlines
Initial premium: Due within 45 days of electing COBRA. Ongoing premiums: Due within 30 days of each due date. Late payment within the grace period won’t terminate coverage, but consistently late payments may result in cancellation.
Important Strategy
You can elect COBRA AND explore ACA simultaneously. Elect COBRA within the 60-day window (to preserve the option), then enroll in ACA during your separate 60-day Special Enrollment Period. If ACA is cheaper (it usually is), let COBRA coverage lapse without paying premiums. If you need COBRA for continuity of care, pay retroactively and use it. Electing COBRA does not prevent you from also enrolling in ACA.
COBRA vs. ACA Marketplace Cost Comparison
| Coverage | COBRA Cost | ACA With Subsidies | Annual Savings |
|---|---|---|---|
| Individual (30 yr old) | $750/month | $0–$150/month | $7,200–$9,000 |
| Individual (45 yr old) | $850/month | $100–$300/month | $6,600–$9,000 |
| Individual (55 yr old) | $950/month | $150–$400/month | $6,600–$9,600 |
| Family of 4 | $2,100/month | $100–$500/month | $19,200–$24,000 |
ACA estimates assume moderate income with enhanced subsidies. Actual savings depend on income, age, and state.
Who Should Read This
💰 Recently Laid Off
Job loss = 60-day SEP for ACA. Your lower income means bigger subsidies. Many pay $0/month. Don’t default to COBRA without checking ACA first.
👨👩👧 Families
Family COBRA = $1,800–$2,500/month. ACA family plans = $100–$500/month. Savings of $18,000+/year for comparable coverage.
🩹 Mid-Treatment Patients
If your specialist isn’t on ACA networks, COBRA keeps your current doctors. Check ACA networks first — many PPO plans include the same specialists.
📈 High Earners
If income is too high for ACA subsidies, compare: COBRA full price vs. ACA full price vs. year-round PPO ($250–$600/month). PPO may be cheapest.
Frequently Asked Questions
See Your COBRA Alternatives
Licensed advisor compares COBRA vs. ACA vs. PPO side by side. See your savings in 15 minutes. Free.
What Our Members Say
Don’t Pay Full Price for COBRA.
ACA alternatives often 60–80% cheaper. Same doctors. Licensed advisor compares options free.
Compare COBRA Alternatives →