How Much Is COBRA Insurance Per Month?
COBRA costs about $793/month for one person and $2,294/month for a family at 2025 average employer premiums. You pay the full premium, including the share your employer used to cover, plus up to 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 under the 2027 rules.
Compare COBRA Alternatives ↓Quick answer: COBRA insurance costs up to 102% of your plan’s full premium: your share, the share your employer used to pay, and a 2% administrative fee. At KFF’s 2025 average employer premiums ($9,325 a year single, $26,993 family), that’s about $793 a month for one person and $2,294 a month for a family.
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How COBRA Pricing Works
When you had employer health insurance, your company paid most of the premium: on average, covered workers contribute 16% of the premium for single coverage and 26% for family coverage, and employers pay the rest (KFF 2025). You only saw the employee share on your paycheck — an average of $1,440 a year (about $120/month) for single coverage or $6,850 a year (about $571/month) for family coverage. Those numbers felt manageable because your employer was quietly paying about $657/month (single) or $1,679/month (family) on top of your share, on average.
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.
Federal law sets the notice timeline: your employer must notify the plan administrator within 30 days of your qualifying event (job loss, hour reduction, etc.), and the administrator then has 14 days to send you a COBRA Election Notice — up to 44 days in total when your employer is also the plan administrator (U.S. Department of Labor). 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 KFF 2025 Employer Health Benefits Survey (average premiums for 2025; the 2026 survey had not been released as of early October 2026):
Individual COBRA Coverage
Average premium: about $777/month ($9,325 a year), or about $793/month with the 2% fee. Your plan’s rate can be well above or below the average, depending on your employer and plan. On average, your employer was paying about $657/month of this and your share was about $120/month. On COBRA, you pay all of it.
Individual + Spouse COBRA Coverage
Two adults on the same plan. KFF reports averages only for single and family coverage; employee-plus-spouse rates usually fall between the two, and your election notice shows the exact amount.
Family COBRA Coverage
Average premium: about $2,249/month ($26,993 a year), or about $2,294/month with the 2% fee — roughly $27,500 a year for a family of four, the family size KFF uses for this average. That’s why many families look at ACA alternatives right away. Compare COBRA vs. the Marketplace →
COBRA Costs by State
COBRA costs vary by state because employer plan pricing differs regionally. The figures below start from 2025 average annual premiums for single coverage at private-sector employers (AHRQ Medical Expenditure Panel Survey–Insurance Component, via KFF) and convert them to a monthly COBRA rate at 102%. That survey’s national average was $9,025 a year, or about $767/month at 102%; it covers private-sector employers only, so it differs slightly from the KFF employer survey above.
Most Expensive States for COBRA
New York: about $928/month single and $2,529/month family at 102% (2025 averages of $10,913 and $29,752 a year). New York had the highest average single-coverage premium of any state in the 2025 survey.
Alaska: about $904/month single. Massachusetts: about $887. Vermont: about $850. Connecticut: about $849.
Moderate Cost States
Texas: about $726/month single. Florida: about $758. Georgia: about $757. North Carolina: about $732. These states sit a little below the national average of about $767.
Least Expensive States for COBRA
Mississippi: about $647/month single (the lowest state average in the 2025 survey). Arizona: about $657. Arkansas: about $663. Alabama: about $694. Lower employer plan premiums mean lower COBRA costs. But even in these states, if you qualify for a premium tax credit, a Marketplace plan can cost much less; see the 2027 examples below.
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
On average, employers pay about 84% of the premium for single coverage and 74% for family coverage for active employees (KFF 2025). 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 the 2025 average single premium of about $777/month, that’s about $16/month extra — 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 not your health history), so they can be dramatically cheaper for younger people. A younger person may find a full-price ACA plan cheaper than COBRA, and a premium tax credit can lower the price further.
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 right away — no need to wait for Open Enrollment. If you pick a plan before your job-based coverage ends, it starts the first day of the month after that coverage ends; if coverage already ended, it starts the first day of the month after you pick a plan. Here’s how ACA compares to COBRA:
Side-by-Side Comparison
COBRA individual: about $793/month at the 2025 average premium. No subsidy. Same employer plan. Same network. ACA Silver with a tax credit (2027 rules): a single adult earning $31,920 (200% of FPL) pays no more than about $180/month for the benchmark Silver plan; at $63,840 (400% of FPL), no more than about $544/month. Above 400% of FPL there’s no tax credit. Networks depend on the insurers in your area. Pre-existing conditions covered.
Savings example (2027 rules): a family of four earning $66,000 (200% of FPL) would pay no more than about $373/month for the benchmark Silver plan (6.78% of income), versus about $2,294/month for COBRA at the 2025 average family premium — a difference of about $23,000 a year. At that income, the children may qualify for CHIP or Medicaid instead. The closer you are to 400% of FPL ($132,000 for a family of four), the smaller the gap. Estimate your 2027 subsidy →
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 many people who qualify for a tax credit, ACA is the cheaper choice. See all your options after a job loss →
COBRA Deadlines and Duration
Election Deadline
You have at least 60 days to elect coverage, counted from the later of the date the COBRA Election Notice is provided or the date you would lose 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); during the extension, the premium can rise to 150% of the plan’s cost.
Payment Deadlines
Initial premium: Plans must give you at least 45 days after you elect COBRA. Ongoing premiums: Plans must allow a grace period of at least 30 days for each payment. Paying within the grace period keeps coverage in force; missing it can end your COBRA coverage.
Important Strategy
You can keep both options open while you decide. You have at least 60 days to elect COBRA and, separately, 60 days after losing job-based coverage to pick a Marketplace plan. Price the Marketplace first; if it’s cheaper, enroll there within your Special Enrollment Period. If you need COBRA for continuity of care, elect it and pay the premiums back to the date your coverage ended. Timing matters: HealthCare.gov says voluntarily dropping COBRA or stopping your COBRA payments later doesn’t qualify you for a new Special Enrollment Period, so decide within your 60-day window.
COBRA vs. ACA Marketplace Cost Comparison
| Household (2027 coverage) | COBRA at 2025 average premium + 2% | Most you’d pay for the benchmark Silver plan (2027 rules) | Difference per year |
|---|---|---|---|
| Single, $31,920 income (200% FPL) | $793/month | About $180/month (6.78% of income) | About $7,350 |
| Single, $63,840 income (400% FPL) | $793/month | About $544/month (10.22% of income) | About $2,990 |
| Family of 4, $66,000 income (200% FPL) | $2,294/month | About $373/month (6.78% of income) | About $23,060 |
| Family of 4, $132,000 income (400% FPL) | $2,294/month | About $1,124/month (10.22% of income) | About $14,040 |
COBRA column: KFF 2025 average annual premiums ($9,325 single, $26,993 family) plus the 2% fee; your election notice shows your actual rate. ACA column: 2027 expected contributions from IRS Rev. Proc. 2026-26 at the income shown, using the 2026 poverty guidelines ($15,960 for one person, $33,000 for a family of four). The benchmark is the second-lowest-cost Silver plan in your area; if it costs less, you pay its actual price, and cheaper plans cost less. Above 400% of FPL there is no tax credit. In a family at 200% of FPL, the children may qualify for CHIP or Medicaid instead. Run your own numbers →
Who Should Read This
💰 Recently Laid Off
Job loss = 60-day SEP for ACA. A lower income can mean a bigger tax credit: under 2027 rules, a single adult earning $31,920 pays no more than about $180/month for the benchmark Silver plan. Don’t default to COBRA without checking ACA first.
👨👩👧 Families
Family COBRA averages about $2,294/month (2025 average premium + 2%). Under 2027 rules, a family of four at $66,000 pays no more than about $373/month for the benchmark Silver plan, and kids may qualify for CHIP.
🩹 Mid-Treatment Patients
If your specialist isn’t on ACA networks, COBRA keeps your current doctors. Check ACA networks first — some Marketplace plans may include the same specialists.
📈 High Earners
If income is too high for ACA subsidies, compare COBRA vs. a full-price ACA plan vs. private plans sold outside the Marketplace. A private plan can cost less if you’re healthy, but approval depends on underwriting; with a pre-existing condition, COBRA or ACA is usually safer.
Sources
- HealthCare.gov — COBRA coverage and the Marketplace
- HealthCare.gov — If you lose job-based health coverage (60-day Special Enrollment Period)
- KFF — 2025 Employer Health Benefits Survey (average premiums; family coverage is defined as a family of four)
- KFF State Health Facts — Average annual single premium per enrolled employee, by state (AHRQ MEPS-IC, 2025)
- KFF State Health Facts — Average annual family premium per enrolled employee, by state (AHRQ MEPS-IC, 2025)
- U.S. Department of Labor — An Employer’s Guide to COBRA (qualifying events, 20-employee rule, notice deadlines, 60-day election, 45-day first payment, 102%/150% premium limits)
- IRS Rev. Proc. 2026-26 — 2027 premium tax credit applicable percentages (PDF)
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