What is the COBRA rate percentage?

Asked by: Breana Lebsack  |  Last update: October 3, 2025
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COBRA continuation coverage may be more expensive than the typical cost of a group health plan since employers are not required to contribute to COBRA premiums and may charge up to 102 percent of the monthly premium (or in some cases up to 150 percent of the monthly premium).

What is the COBRA percentage?

How much does COBRA insurance cost? COBRA insurance typically costs 102% of the total health plan premium.

Can I have Medicare and COBRA at the same time?

If you sign up for COBRA and you are eligible for Medicare at the same time, your COBRA benefits are intended to be paid after Medicare pays, even if you haven't actually signed up for Medicare. And when you do sign up for Medicare later you could be subject to premium penalties for late enrollment.

Is COBRA rates 102%?

Premiums for COBRA continuation coverage cannot exceed 102 percent of the cost to the plan for similarly situated individuals who have not experienced a COBRA qualifying event. The cost to the plan is both the portion paid by employees and any portion paid by the employer before the qualifying event.

Is there a cheaper alternative to COBRA?

Not only are Marketplace health insurance plans typically less expensive than COBRA, most Marketplace applicants (91% in 2022) qualify for at least some government subsidy to help pay their premiums. The amount of the subsidy depends on your income, where you live and the size of your family.

Everything you need to know about COBRA

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Is COBRA even worth it?

While it may seem like a lot of money, COBRA may actually cost you less than what you'll pay on the open market. That's because you may still get your former company's group discount. You can also use a health savings account (HSA) to pay for your COBRA premiums. They're considered a qualified medical expense.

How do I calculate COBRA costs?

Using the information provided in Box 12 of your most recent W-2 form, labeled Code DD, you will find the total annual cost of your employer-sponsored health coverage. To determine your monthly COBRA premium, divide this annual amount by 12 and include any applicable administrative fees, which may be up to 2%.

Why is my COBRA premium so high?

In general, when you get health insurance through your job, your employer pays a portion of the premium. You should expect COBRA insurance costs to be substantially higher than what you paid as an employee because your employer is no longer required to pay a share.

Is COBRA disability 150%?

You may find the premium payment that you must pay for the additional 11 months of COBRA continuation coverage is more than what you were paying during the original 18-month period. You can be charged up to 150% of the plan's total cost of your coverage for the disability extension period.

What is the maximum COBRA out of pocket?

There is a $2,500 out-of-pocket maximum for individuals and an out-of-pocket maximum of $4,000 for families.

What is the COBRA loophole?

If you decide to enroll in COBRA health insurance, your coverage will be retroactive, meaning it will apply to any medical bills incurred during the 60-day decision period. This loophole can save you money by avoiding premium payments unless you actually need care during this time.

Who is not eligible for COBRA?

Why would an employee not qualify to enroll in Cal-COBRA? The employee is enrolled in or eligible for Medicare. The employee does not enroll within 60 days of receiving the notice of eligibility from the employer. The employee is covered by another health plan.

Who pays for COBRA after termination?

COBRA and Cal-COBRA

COBRA allows former employees, retirees, and their dependents to temporarily keep their health coverage. If you get COBRA, you must pay for the entire premium, including any portion that your employer may have paid in the past.

What percentage is COBRA?

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Is COBRA 18 months or 36 months?

In that case, COBRA lasts for eighteen months. If the qualifying event is the death of the covered employee, divorce or legal separation of the covered employee from the covered employee's spouse, or the covered employee becoming entitled to Medicare, COBRA for the spouse or dependent child lasts for 36 months.

What percentage is disability?

Overall, there are about 42.5 million Americans with disabilities, making up 13% of the civilian noninstitutionalized population, according to U.S. Census Bureau data from 2021. This group includes people with hearing, vision, cognitive, walking, self-care or independent living difficulties.

What is the rate for COBRA disability?

During the COBRA disability extension, the plan may charge up to 150% of the applicable premium for coverage, rather than the maximum of 102% of the applicable premium charged during the first 18-months of coverage.

What is a COBRA amount?

Your group health plan can require you to pay for COBRA continuation coverage. The amount charged to qualified beneficiaries cannot exceed 102 percent of the cost to the plan for similarly situated individuals covered under the plan who have not incurred a qualifying event.

Is COBRA cost 102%?

COBRA premiums are calculated at 102% of the Basic premiums, but some carriers may charge less than these maximum amounts. 1These premiums cover all Kaiser out-of-state areas.

How to calculate COBRA rates?

If you want to figure this out on your own, ask HR how much your employer is contributing toward your monthly coverage. Then, check your pay stub to see how much you're contributing. After adding these figures, add another 2% (for the service fee). This will show you exactly how much you'll expect to pay for COBRA.

Is COBRA ever worth it?

If you're close to meeting your deductible on your current insurance plan and you have high health care costs, it may be worth it to temporarily stay on your COBRA plan,” explains Donovan. The same holds true if you're far into your employer plan's year and have already met your deductible.

Is COBRA cheaper than marketplace?

Both COBRA and ACA Marketplace plans have their advantages. COBRA lets you keep your exact employer-based plan but is often more expensive. ACA plans may be more affordable, especially with subsidies, but require choosing a new plan. The best choice depends on your financial situation and healthcare needs.

Are COBRA costs tax deductible?

Are my COBRA premiums deductible? Yes they are tax deductible as a medical expense. There isn't necessarily a “COBRA Tax Deduction”. You can only deduct the amount of COBRA medical expenses on your federal income tax in excess of 7.5% of your Adjusted Gross Income and then only if you itemize deductions.

How long can you stay on COBRA?

While COBRA is temporary, in most circumstances, you can stay on COBRA for 18 to 36 months.