How Much Is COBRA Insurance Per Month? Real Costs Explained

COBRA insurance isn’t cheap. If you’ve ever lost your job or switched careers, you might’ve felt your jaw drop seeing the monthly premium. When you’re used to your boss covering a chunk of your health insurance, that full bill can look huge on paper.

Here’s the short version: COBRA usually costs somewhere between $400 and $700 per person every month. Families? Try $1,500 or even more. These aren’t random numbers; they’re basically what your employer was already paying for your health plan—plus a little extra for admin fees (usually 2%).

If that sounds wild, you’re not wrong. Most people never see the real price tag because companies soak up most of it. Once you go on COBRA, it’s all yours to pay—no hiding, no sharing. And yes, that bill doesn’t include any extras or actual doctor visits. This is just the insurance policy itself.

• What Is COBRA and Who Qualifies?
• Monthly COBRA Insurance Costs: The Numbers
• Why COBRA Is So Expensive
• Tips to Save Money and Alternatives

What Is COBRA and Who Qualifies?

Let’s clear up what COBRA insurance actually is before getting into the price. COBRA stands for the Consolidated Omnibus Budget Reconciliation Act—yeah, a mouthful. All it really means is you have the right to keep your old job’s group health insurance for a while, even if you don’t work there anymore.

So, who gets this option? It mostly covers people who lose their job (unless you’re fired for serious misconduct), get their hours cut, or go through a big life change—like divorce or death of the covered employee. Your employer has to offer this only if they have at least 20 full-time workers on their payroll. Small companies aren’t required to give COBRA at all.

Here’s a quick rundown on who usually qualifies for COBRA insurance:

• You quit or got laid off from your job (not for gross misconduct like stealing or violence)
• Your hours get cut below the plan’s minimum requirement
• You’re a spouse or dependent of someone in those situations
• Your employer goes bankrupt (for retirees covered under the plan)

And let’s talk about timing. You don’t have forever to decide—once you get the COBRA notice, you have 60 days to sign up or say no thanks. Miss that window? The offer’s gone. Coverage can last up to 18 months for most people, though some special cases (like disability) can get longer extensions, up to 36 months.

Here’s a handy table showing who qualifies and for how long:

Bottom line: If you worked for a mid-to-large employer, lost health coverage, and move fast, you probably qualify for COBRA. But you’ve got to be ready for that full-price sticker shock.

Monthly COBRA Insurance Costs: The Numbers

If you’re checking out COBRA insurance cost because you just lost health coverage from work, here’s what you need to know: the sticker price is a shock for most folks. You’ll pay the whole premium that your former employer used to chip in for, and that’s before you even use your insurance.

According to a 2024 report from KFF, the average monthly premium for employer coverage in the U.S. was about $625 for one person and $1,900 for family coverage. When you elect COBRA, add up to 2% extra as an administrative fee. That pushes the average COBRA insurance cost to around $637 per person and $1,938 per family each month. These are just averages—your actual price depends on the specific plan your old job offered.

That’s just for the insurance. It doesn’t cover deductibles, doctor visits, or medicines. Also, if your plan had dental or vision, you’ll pay more for those add-ons.

• The rate stays the same for your entire coverage period (up to 18 months, sometimes longer for special cases).
• You can stay on your old plan, which is awesome if you want the same doctors and coverage, but it’s hard for most people to keep up with those monthly bills.

If you have specific health needs or are in the middle of care, those mountains of paperwork and calls can feel worth it to preserve your old benefits. But for most, the high monthly rates catch them off guard.

Why COBRA Is So Expensive

COBRA costs feel brutal because you’re now paying the full sticker price of your COBRA insurance cost with zero help from your job. While you were working, most employers picked up 70% to 80% (or even more) of your health insurance premium. With COBRA, you’re now on the hook for that entire amount, plus that sneaky little 2% administrative fee tacked on top.

Let’s put that into perspective: If your family plan at work really cost $2,000 a month, but you only paid $350, your employer was quietly handling the other $1,650. Lose your job, and suddenly that whole $2,000 plus a $40 admin fee drops onto your lap. That’s the reality of private healthcare coverage through COBRA.

If you took a peek at your pay stubs, you probably never saw these true numbers, which is one reason COBRA feels like such a shock. The Affordable Care Act (ACA) marketplace, for example, often comes with subsidies or lower-priced plans for folks with less income. COBRA doesn’t offer those breaks—it's just the raw, insurer-charged price.

And that extra 2% admin fee? It’s not just for fun—it helps cover your old employer’s paperwork and COBRA process, but when you tack it on to a big bill, it stings a bit.

• COBRA premiums = Full monthly premium (employer + employee share) + 2% admin fee
• No subsidies or discounts, even if your income drops
• The cost often ranges from $400–$700 per single person, $1,500+ for families (2024 averages)

Check out this sample cost table for context:

So next time you see that COBRA bill, just remember: it’s not going up just to annoy you. It’s simply the real cost of staying on your old job’s health insurance with zero employer help.

Tips to Save Money and Alternatives

Feeling squeezed by those COBRA insurance cost numbers? You’re not alone. Luckily, there are real ways to trim your health coverage bill or even skip COBRA insurance completely if it doesn’t fit your budget. Most people don’t know their options, so let’s clear things up.

First off, check your eligibility for a government subsidy. Since losing job-based coverage is a qualifying event, you can shop Marketplace health plans at HealthCare.gov or your state exchange. Depending on your income, you could score a private healthcare plan for much less. For 2024, over 90% of Marketplace shoppers got a tax credit to lower their monthly premiums.

Want cheaper coverage? Here are some options to explore instead of automatically paying for COBRA:

• ACA Marketplace Plans: Easy to compare and often come with subsidies. Many people qualify but don’t realize it.
• Medicaid: If your income has dropped, you might qualify—even if you didn’t before.
• Spouse or Parent Coverage: If you’ve got a partner or parent with job-based insurance, check if you can join their plan—losing your job is what they call a “qualifying life event.”
• Short-Term Health Plans: Not ideal for long-term needs or folks with pre-existing conditions, but can be super cheap and good for a stopgap.
• Direct Primary Care or Health-Sharing Ministries: Not insurance, but might help with routine stuff while you figure out a longer-term solution.

It pays to do the math. Paul Fronstin from the Employee Benefit Research Institute said,

“COBRA is often the most expensive route because you lose your employer’s contribution. People can save hundreds a month by checking both the ACA Marketplace and Medicaid.”

Here’s a quick step-by-step to save money on COBRA insurance cost:

1. Compare your COBRA price to ACA plans on HealthCare.gov.
2. Ask about joining a family member’s job-based plan.
3. If your income is tight, check Medicaid right away.
4. Look into a short-term plan just in case you need fast coverage.

It can feel overwhelming with all these choices, but don’t just accept the first (and priciest) bill you get. Give yourself a week to look around. A little effort now could easily save you a few hundred bucks each month!