Cobra Health Insurance Calculator
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Reviewed by Calculator Editorial Team
Understand your COBRA health insurance premiums with our free calculator. Learn about COBRA benefits, premium calculations, and how to make informed decisions about your health coverage.
What is COBRA?
COBRA (Consolidated Omnibus Budget Reconciliation Act) is a federal law that provides temporary continuation of group health insurance coverage for qualified beneficiaries who lose their job-based coverage. COBRA allows individuals to keep their health insurance for a limited time while they look for new coverage.
COBRA is not the same as Medicare. It's a temporary solution for people who lose employer-sponsored health insurance.
Key Features of COBRA
- Provides up to 18 months of continuation coverage (11 months for federal employees)
- Premiums are typically 102% of the original employer's premium
- Covers the same plan as the original employer plan
- Available to spouses and dependent children
- Requires election within 60 days of losing coverage
How COBRA Works
The COBRA process involves several key steps:
- Eligibility Determination: The employer must determine if you qualify for COBRA coverage.
- Election Period: You have 60 days from the date of coverage loss to elect COBRA.
- Payment of Premiums: You must pay the COBRA premiums directly to the health plan.
- Coverage Period: COBRA coverage begins on the first day of the month following the month you lose coverage.
COBRA Premium Calculation
The COBRA premium is typically calculated as 102% of the original employer's premium. The exact amount depends on your specific plan details.
COBRA vs. Other Options
| Option | Duration | Premium Cost | Coverage Details |
|---|---|---|---|
| COBRA | Up to 18 months | 102% of original premium | Same as original plan |
| State Continuation | Varies by state | Varies by state | May differ from original plan |
| Individual Market | Ongoing | Varies by plan | May have different benefits |
Using the Calculator
Our COBRA health insurance calculator helps you estimate your monthly premiums based on your original employer's premium. Simply enter your original monthly premium and the calculator will show you the estimated COBRA premium.
Remember that COBRA premiums are typically 102% of your original employer's premium. The calculator uses this standard rate for estimation purposes.
Calculator Features
- Estimates monthly COBRA premium based on original premium
- Shows total estimated cost for the COBRA period
- Provides a breakdown of costs
- Offers a visual representation of your costs
Example Calculation
Let's look at an example to understand how the COBRA premium is calculated.
Example Scenario
Original employer premium: $300/month
COBRA premium: $300 × 1.02 = $306/month
Total for 18 months: $306 × 18 = $5,508
In this example, the COBRA premium would be $306 per month, and the total estimated cost for 18 months of coverage would be $5,508.
FAQ
COBRA coverage typically lasts up to 18 months for most employees, and up to 11 months for federal employees. You must elect COBRA within 60 days of losing your job-based coverage.
COBRA premiums are usually 102% of your original employer's premium. The exact amount depends on your specific health plan details.
Qualified beneficiaries include the employee, spouse, and dependent children who were covered under the employer's group health plan.
No, COBRA is only available if you lose your job-based coverage due to a qualifying event such as termination, reduction in hours, or divorce.