COBRA allows you to continue your employer's health insurance after job loss, but you pay the full premium (employee + employer share) plus a 2% administrative fee. This makes COBRA one of the most expensive health insurance options, often costing $600-$2,000+ per month.
COBRA Insurance Cost
$600 - $2,000+/moUpdated March 2026
Frequently Asked Questions
How much does COBRA insurance cost?
COBRA costs the full monthly premium (employee + employer shares) plus a 2% administrative fee. Average costs: Individual $750/mo, Family $2,100/mo. This is 2-4x what you paid as an employee because your employer no longer subsidizes the premium.
Is COBRA worth it?
COBRA is worth it if: you are mid-treatment with a specific doctor/hospital, you have a chronic condition and want to keep your current network, or you need coverage for just 1-3 months until new coverage starts. Otherwise, ACA marketplace plans with subsidies are usually cheaper.
How long does COBRA last?
COBRA lasts up to 18 months for job loss or reduction in hours. It lasts up to 36 months for other qualifying events (divorce, death of employee, Medicare eligibility). Some states extend coverage beyond federal COBRA requirements.
Can I switch from COBRA to a marketplace plan?
Yes. Losing or exhausting COBRA coverage qualifies you for a Special Enrollment Period on the marketplace. You can also drop COBRA during the marketplace Open Enrollment period. In many cases, marketplace plans with subsidies are significantly cheaper.
Is there a cheaper alternative to COBRA?
Yes, several alternatives are typically cheaper: ACA marketplace plans (especially with subsidies), spouse's employer plan, short-term health insurance, health sharing ministries, and Medicaid (if income qualifies after job loss). Compare all options before choosing COBRA.