When people lose employer-sponsored health coverage, one of the first questions they ask is: how much is COBRA health insurance a month?
COBRA coverage can be expensive, but it offers reliable, comprehensive benefits and allows you to keep the same doctors and health plan.
In this article, we break down the monthly cost of COBRA health insurance, explain why it is expensive, discuss factors that affect pricing, and explore more affordable health insurance alternatives.
What Is COBRA Health Insurance?
COBRA health insurance is a continuation coverage program under the Consolidated Omnibus Budget Reconciliation Act. It allows eligible employees and their families to continue employer-sponsored group health insurance after qualifying life events such as job loss, reduced work hours, or resignation.
COBRA coverage maintains the same benefits, deductibles, and provider network as your employer plan—but at a higher cost.
How Much Is COBRA Health Insurance a Month?
The monthly cost of COBRA health insurance depends on the plan provided by your employer. Under COBRA, you must pay:
- 100% of the health insurance premium
- Plus up to a 2% administrative fee
Average Monthly COBRA Health Insurance Costs
| Coverage Type | Average Monthly Cost |
|---|---|
| Individual Plan | $400 – $900 |
| Employee + Spouse | $800 – $1,500 |
| Family Plan | $1,000 – $2,500 |
These figures explain why COBRA is often considered one of the most expensive health insurance options in the U.S.
Why Is COBRA Health Insurance So Expensive?
There are several reasons why COBRA insurance costs so much each month:
1. No Employer Contribution
Most employers pay 60%–80% of employee health insurance premiums. Under COBRA, this employer contribution stops.
2. Administrative Fees
COBRA plans are allowed to charge a 2% administrative fee, increasing your monthly premium.
3. Comprehensive Group Coverage
COBRA plans provide broad coverage, including preventive care, hospital services, and prescription drugs, which increases cost.
What Factors Affect Monthly COBRA Health Insurance Cost?
The monthly cost of COBRA health insurance depends on several factors:
- Type of plan (PPO, HMO, or HDHP)
- Number of people covered
- Geographic location
- Employer health plan design
- Deductibles and copayments
Plans with low deductibles and wide provider networks typically have higher monthly premiums.
How Long Do You Pay COBRA Health Insurance Monthly?
The length of COBRA coverage depends on the qualifying event:
- 18 months for job loss or reduced hours
- 36 months for divorce, death, or dependent eligibility loss
You can cancel COBRA coverage at any time if you find cheaper health insurance.
Is COBRA Health Insurance Worth the Monthly Cost?
COBRA health insurance may be worth the monthly cost if:
- You need immediate coverage without gaps
- You want to keep your current doctors and hospitals
- You are undergoing ongoing medical treatment
- You expect new employer coverage soon
For short-term needs, the higher cost may be justified.
COBRA Health Insurance vs ACA Marketplace Monthly Costs
Many people compare COBRA health insurance vs Marketplace insurance:
| Feature | COBRA Health Insurance | Marketplace Insurance |
|---|---|---|
| Monthly Cost | Higher | Lower with subsidies |
| Coverage | Same employer plan | New plan |
| Provider Network | Same | May change |
| Financial Assistance | Not available | Available |
Marketplace insurance often provides more affordable monthly premiums, especially for those who qualify for subsidies.
How to Lower Your Monthly Health Insurance Cost Instead of COBRA
If COBRA premiums are too high, consider:
- Applying for ACA Marketplace health insurance
- Checking eligibility for premium tax credits
- Joining a spouse’s employer-sponsored plan
- Using short-term health insurance (temporary solution)
- Using COBRA only for emergencies or short coverage gaps
What Happens If You Don’t Choose COBRA?
If you choose not to enroll in COBRA:
- You may face a gap in coverage
- Medical emergencies can become very expensive
- You may still qualify for special enrollment in the Marketplace
Always compare options during the 60-day enrollment period.
Tax Considerations for COBRA Health Insurance
COBRA premiums are typically paid with after-tax income, but in some cases, they may be tax-deductible as a medical expense depending on your income level.
Final Thoughts: How Much Is COBRA Health Insurance a Month?
So, how much is COBRA health insurance a month? On average, individuals pay $400 to $900 per month, while family coverage can range from $1,000 to $2,500 per month. While COBRA is expensive, it provides comprehensive health insurance coverage and continuity of care.
Before enrolling, always compare COBRA with ACA Marketplace plans, spouse coverage, or short-term health insurance to find the most affordable option for your situation.