How Much Does COBRA Cost? 2025 Average Costs by State

The short answer: COBRA is expensive

The average COBRA premium in 2025 is approximately $635/month for individual coverage and $1,820/month for family coverage. These figures reflect the full cost of employer-sponsored health insurance — including the share your employer used to pay on your behalf — plus the mandatory 2% COBRA administrative fee.

To put that in perspective: when you were employed, you likely paid only 20–30% of your health insurance premium. Your employer quietly covered the rest. COBRA makes you pay 102% of the total. For most people, that's a significant and unexpected expense after a job loss.

Why COBRA costs so much more than you paid as an employee

Your paycheck deduction for health insurance was only your employee contribution — a fraction of the actual plan cost. Employers typically cover 70–83% of the premium for individual coverage and 60–73% for family coverage, according to KFF (Kaiser Family Foundation) employer health benefits data.

When you lose your job and elect COBRA, that employer subsidy disappears. You suddenly pay:

• Your old employee contribution (what came out of your paycheck)
• Your employer's contribution (what they paid invisibly)
• A 2% administrative fee on top of the combined total

If you were paying $200/month as an employee, your COBRA premium might be $750–$900/month for the exact same plan.

2025 average COBRA costs — individual coverage

These are regional averages based on 2025 employer health benefit survey data. Your actual cost depends entirely on your former employer's specific plan. A large self-insured employer may have very different costs than a small business plan.

2025 average COBRA costs — family coverage

Family COBRA premiums are substantially higher because they cover multiple people under one plan. The national average for employer-sponsored family coverage in 2025 is approximately $23,000–$24,000 per year total — meaning a COBRA family premium of roughly $1,950–$2,050/month including the 2% admin fee.

For families with children or a working spouse who lost coverage, this is often the biggest financial shock of a job loss. Comparing Marketplace plans with premium tax credits becomes even more important at this cost level.

How to find your exact COBRA premium

You don't have to guess. There are three ways to find your specific number:

• Your COBRA election notice. Your former employer is required to send you a COBRA election notice within 14 days of your qualifying event (job loss). This notice lists your exact monthly premium for each coverage tier — individual, employee + spouse, employee + children, or family.
• Your W-2, Box 12, Code DD. If you have last year's W-2, find the entry labeled Code DD in Box 12. This shows the total annual cost of your employer health plan (both your share and the employer's share). Divide by 12 and multiply by 1.02 to get your monthly COBRA premium estimate.
• Your HR department. If you haven't received your COBRA notice yet, call or email your former HR department or benefits administrator. They are required to provide this information.

COBRA cost vs. ACA Marketplace — which is cheaper?

For most people who lost job-based coverage, an ACA Marketplace plan with premium tax credits will be less expensive than COBRA — often significantly so. The key variable is your income relative to the Federal Poverty Level (FPL).

• Under 150% FPL (~$21,000/yr single): Marketplace plans may be available for $0/month after subsidies
• 150–250% FPL (~$21,000–$37,500/yr single): Substantial subsidies typically bring premiums well below COBRA
• 250–400% FPL (~$37,500–$60,000/yr single): Federal subsidies still apply — Marketplace is usually cheaper than COBRA
• 400–600% FPL: Subsidies taper off. The comparison depends on your specific plan costs and age
• Above 600% FPL: No subsidy. Compare full plan costs directly — COBRA may be competitive at high incomes

States like California, New York, Massachusetts, and New Jersey offer additional state subsidies on top of the federal ACA subsidies, making the Marketplace even more attractive for residents of those states.

Hidden costs of COBRA beyond the premium

The monthly premium is not the only cost to consider with COBRA. Keep these factors in mind:

• Retroactive premiums if you wait. If you wait before electing COBRA (which is legally permitted for up to 60 days), you'll owe all back premiums at once if you end up needing the coverage. This can be a large lump sum.
• Premium payment deadlines are strict. COBRA has a 30-day grace period for late payments, but missing it entirely can terminate your coverage retroactively. Unlike a credit card, there's no forgiveness after the grace period.
• No employer subsidy ever. Unlike employer coverage, there is no scenario where your former employer contributes to your COBRA premium — unless they specifically offer it as part of a severance package.
• COBRA ends if you get new employer coverage. If you start a new job with health benefits, you must stop COBRA. You can't carry both.

Is COBRA worth the cost?

COBRA is worth the cost in specific situations: when you have significant deductible progress you don't want to lose, when you're in the middle of treatment with specific doctors who don't accept Marketplace plans, or when you expect new employer coverage within a few weeks.

For most people facing a longer gap in employment, comparing Marketplace options carefully — especially with a free navigator or broker — will reveal a less expensive alternative. The premium savings over 6–18 months can be substantial.

Use our free calculator to see a personalized side-by-side comparison of your COBRA cost vs. estimated Marketplace premium in seconds.