How Much Does COBRA Cost After a Layoff? What You Could Pay in 2026
Losing your job can create a second financial shock that has nothing to do with your paycheck.
Your health insurance can suddenly become much more expensive.
COBRA may let you keep the same employer-sponsored health coverage temporarily after a layoff, but you can generally be required to pay the entire premium yourself, plus up to a 2% administrative charge.
That can turn a few hundred dollars coming out of your paycheck into a monthly bill approaching $800 for single coverage — or more than $2,000 for family coverage — depending on the actual cost of your employer's plan.
COBRA is expensive because you may lose the employer subsidy that helped pay for your health insurance while you were working.
Using 2025 national employer-plan averages as a benchmark, the full premium was about $777 per month for single coverage and $2,249 per month for family coverage.
At 102% of those amounts, that would be roughly $793 per month for single coverage or $2,294 per month for family coverage.
These are national illustrations, not your actual COBRA quote. Your real cost depends on your employer's health plan.
Why Is COBRA So Expensive?
The biggest reason is simple:
You may have been paying only part of the real cost of your health insurance while employed.
Your employer may have been paying the rest.
After a qualifying event such as certain job losses or reductions in hours, COBRA can allow eligible workers and family members to temporarily continue group health coverage.
But the employer generally does not have to keep subsidizing the premium.
The U.S. Department of Labor says a plan can generally charge a COBRA beneficiary up to 102% of the total cost of coverage.
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Employer share
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Up to 2% administrative charge
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Your potential COBRA premium
How Much Could COBRA Cost Per Month?
The latest KFF employer health benefits benchmark available for this calculation reports that average employer-sponsored health insurance premiums in 2025 were:
- $9,325 per year for single coverage
- $26,993 per year for family coverage
Converted to monthly amounts:
| Coverage | Average Annual Premium | Average Monthly Premium | Illustrative 102% COBRA Cost |
|---|---|---|---|
| Single | $9,325 | About $777 | About $793/month |
| Family | $26,993 | About $2,249 | About $2,294/month |
Again, these are illustrations based on national average employer-plan premiums.
Your COBRA notice should tell you what your actual continuation coverage will cost.
What Changed From Your Paycheck?
This is where the sticker shock becomes easier to understand.
KFF reported that in 2025 workers paid an average of $1,440 per year toward single coverage and $6,850 per year toward family coverage.
That works out to roughly:
| Coverage | Average Worker Contribution While Employed | Illustrative COBRA at 102% | Approx. Monthly Increase |
|---|---|---|---|
| Single | $120/month | $793/month | +$673/month |
| Family | About $571/month | $2,294/month | +$1,723/month |
This does not mean everyone's premium will increase by these amounts.
It demonstrates what happens when the employer contribution disappears.
Example: Your Health Insurance Used to Cost You $250 a Month
Suppose $250 came out of your paycheck every month for health insurance.
But the actual total cost of your plan was $900 per month.
Your employer was paying the other $650.
Employer paid: $650
Total premium: $900
If the plan charges the full 102% under COBRA:
$918 per month
Your health plan did not suddenly become almost four times more expensive.
You became responsible for the portion your employer had been paying.
COBRA Cost Calculator
If you know the total monthly cost of your employer health plan, you can estimate the maximum standard COBRA premium using this calculator.
How Much Would COBRA Cost for 3, 6 or 12 Months?
The monthly number becomes more important when unemployment lasts longer than expected.
Using the national-average illustrations above:
| Coverage | 3 Months | 6 Months | 12 Months |
|---|---|---|---|
| Single at ~$793/month | $2,379 | $4,758 | $9,516 |
| Family at ~$2,294/month | $6,882 | $13,764 | $27,528 |
That is why health insurance belongs in a layoff emergency budget alongside rent or mortgage payments, food and debt payments.
How Long Can COBRA Last After a Layoff?
For job loss or a reduction in hours, COBRA continuation coverage generally can last up to 18 months.
Certain circumstances can extend coverage longer.
The exact rules depend on the qualifying event and beneficiary.
Do You Have to Decide Immediately?
Generally, no.
The Department of Labor says you normally have at least 60 days to elect COBRA, measured from the later of the date you lose coverage or the date you receive the COBRA election notice.
That does not mean you should ignore the paperwork.
It means you have a limited window to compare your options carefully.
The election-period calculation depends on the applicable coverage-loss and election-notice dates.
When Does COBRA Coverage Start?
If you properly elect COBRA and satisfy the applicable payment requirements, continuation coverage generally reaches back to the date your prior coverage ended so that there is no coverage gap.
This feature can be valuable when you are between jobs and uncertain how quickly new employer coverage will begin.
How Much Is the First COBRA Payment?
This can surprise people.
Because you have time to make the COBRA election, your initial payment may need to cover premiums back to the beginning of continuation coverage.
For example, if your COBRA premium were $900 per month and your first required payment covered two months:
$1,800
The actual deadline and amount should be confirmed in your COBRA election materials and with your plan administrator.
COBRA vs ACA Marketplace: Which Is Cheaper?
COBRA is not your only possible option after losing employer health coverage.
Losing job-based health coverage can generally create a special enrollment opportunity for Marketplace coverage.
The better option depends on:
- Your COBRA premium
- Your household income after the layoff
- Marketplace premium assistance eligibility
- Deductibles
- Out-of-pocket maximums
- Doctors and hospitals in the network
- Prescription drug coverage
- Whether you have already spent heavily toward your current plan's deductible
Do not compare premiums alone.
Why COBRA Can Still Be Worth Paying For
A high premium does not automatically make COBRA a bad choice.
COBRA can be particularly useful when continuity matters.
For example:
- You are in the middle of significant medical treatment.
- Your doctors are already in your current plan's network.
- You have already paid a substantial amount toward the current plan's deductible or out-of-pocket limit.
- You expect to start another employer plan soon.
- Changing insurance would disrupt prescriptions or ongoing care.
The cheapest premium and the cheapest total healthcare option are not always the same thing.
When an ACA Marketplace Plan May Be Worth Comparing
A Marketplace plan may deserve a close look if:
- Your COBRA premium is difficult to afford.
- Your household income has fallen significantly after the layoff.
- You may qualify for Marketplace financial assistance.
- You are comfortable changing networks or plans.
- You expect to need coverage for a longer period.
Compare actual plan costs and coverage before making the decision.
What About a Spouse's Health Plan?
If your spouse has employer-sponsored health coverage, losing your own job-based coverage may also create a special enrollment opportunity in that plan, subject to the plan's rules and applicable deadlines.
This can sometimes be significantly cheaper than COBRA.
Can Your Employer Pay COBRA After a Layoff?
Yes.
An employer can agree to pay some or all of your COBRA premiums, including as part of a severance package.
But federal COBRA rules generally do not require the employer to continue subsidizing your premium after employment ends.
If your severance package includes health coverage assistance, determine:
- How much the employer will pay
- How many months it lasts
- Whether you must elect COBRA first
- When you become responsible for the full premium
What Should You Do Immediately After a Layoff?
- Find out exactly when your employer health coverage ends.
- Read the COBRA election notice.
- Write down the actual monthly COBRA premium.
- Check whether severance includes health-insurance assistance.
- Compare Marketplace coverage.
- Check whether you can join a spouse's employer plan.
- Compare deductibles, networks and out-of-pocket limits — not just premiums.
- Do not miss enrollment or payment deadlines.
FAQ
How much does COBRA insurance cost after a layoff?
Your actual cost depends on the employer health plan. Under federal COBRA rules, a plan can generally require you to pay up to 102% of the total plan cost, including both the employee and former employer portions.
Why is COBRA so expensive?
While employed, your employer may have paid a substantial share of your health-insurance premium. Under COBRA, you can become responsible for the full premium plus up to a 2% administrative charge.
What is the average COBRA cost for one person?
There is no single national COBRA premium. Using KFF's 2025 average employer-sponsored single premium of $9,325 per year, 102% would equal roughly $793 per month. Your actual employer plan may cost substantially more or less.
How much could family COBRA cost?
Using KFF's 2025 average family employer-sponsored premium of $26,993 as an illustration, 102% would be roughly $2,294 per month. Actual plan costs vary widely.
How long do I have to elect COBRA?
You generally have a 60-day election period beginning from the later of the applicable coverage-loss date or the date the election notice is provided.
How long does COBRA last after losing a job?
COBRA coverage following termination of employment or a reduction in hours generally can continue for up to 18 months, although certain qualifying events can allow longer periods.
Can my employer pay my COBRA premiums?
Yes. An employer can voluntarily pay part or all of the premium, including through a severance arrangement, but generally is not required by COBRA to do so.
Is COBRA better than an ACA Marketplace plan?
It depends. COBRA can preserve your existing plan and provider network, while Marketplace coverage may offer a lower premium depending on your household income and available financial assistance. Compare premiums, deductibles, networks and total expected healthcare costs.
Can my family keep COBRA if I do not?
Eligible spouses and dependent children may have independent COBRA election rights in qualifying circumstances. Review the election notice and plan rules for your specific situation.
Bottom Line
COBRA can be one of the biggest hidden costs of losing a job.
The health plan itself may not suddenly become more expensive.
The difference is that your former employer may no longer be paying part of the bill.
Federal rules generally allow the plan to charge up to 102% of the total cost of coverage.
Using recent national employer-plan averages only as an illustration, that could mean approximately $793 per month for single coverage or $2,294 per month for family coverage.
Before electing COBRA, compare the actual COBRA premium with Marketplace coverage and any coverage available through a spouse.
But do not compare premium alone.
Compare what it will actually cost to stay insured while you get to your next job.
Sources
- U.S. Department of Labor — A Worker's Guide to Health Benefits Under COBRA
- U.S. Department of Labor — COBRA Continuation Coverage
- U.S. Department of Labor — FAQs on COBRA Continuation Health Coverage
- KFF — 2025 Employer Health Benefits Survey
This article is for general informational purposes only and is not individualized legal, health-insurance, tax or financial advice. COBRA eligibility, premiums, deadlines and coverage depend on your plan and circumstances. Review your official election notice and contact your plan administrator when necessary.
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