COBRA coverage can be expensive because the individual pays the full cost of the health plan—not just the portion they paid while employed.
Under COBRA, the cost includes:
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The employee share
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The employer contribution
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Plus up to a 2% administrative fee
So if the total monthly premium for a health plan is $600, and the employer was covering $400 of that while the employee paid $200, the full COBRA premium would be:
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$600 + 2% = $612 per month
💰 Why It Feels Expensive
Many people are surprised by COBRA costs because they’re used to only seeing their share of the premium on their paycheck. When that employer contribution disappears, it feels like a huge increase—even though the coverage itself hasn’t changed.
🧠Tip:
Employees losing coverage should compare COBRA to other options like Marketplace plans or a spouse’s coverage, especially if they qualify for subsidies.