How Do I Calculate Cobra Costs


When you’re transitioning between jobs or facing a change in your employment status, one of the crucial considerations is your health insurance. The Consolidated Omnibus Budget Reconciliation Act (COBRA) allows you to continue your employer’s health insurance plan for a limited period. Understanding the costs associated with COBRA coverage is essential. To help you estimate these costs, we’ve created a user-friendly COBRA Cost Calculator. This tool allows you to determine your monthly premium and the subsidy amount, providing insights into your potential COBRA expenses.


To use the COBRA Cost Calculator effectively, it’s essential to understand the formula it employs:

  1. Determine your COBRA costs: COBRA costs are calculated by subtracting the subsidy amount from the monthly premium.

This straightforward formula provides you with an estimate of your monthly COBRA expenses.

How to Use

Our COBRA Cost Calculator is designed to be straightforward and easy to use:

  1. Enter the Monthly Premium: Input the monthly premium amount for your employer’s health insurance plan.
  2. Specify the Subsidy Amount: Provide the amount of any subsidies or financial assistance you may receive to offset the COBRA costs.
  3. Click “Calculate”: Press the “Calculate” button to obtain your results.
  4. View the Results: The calculator will display your estimated COBRA costs, indicating the amount you will need to pay each month.


Let’s say your employer’s health insurance plan has a monthly premium of $400, but you qualify for a subsidy of $100 to help cover the COBRA costs.

  • Monthly Premium: $400
  • Subsidy Amount: $100

After clicking “Calculate,” you’ll find that your estimated COBRA costs are $300 per month.


1. What is COBRA, and who is eligible for it? COBRA, or the Consolidated Omnibus Budget Reconciliation Act, allows eligible employees and their dependents to continue their employer-sponsored health insurance when faced with specific life events, such as job loss.

2. What is the COBRA subsidy? The COBRA subsidy is a financial assistance program that helps eligible individuals cover the cost of their COBRA premiums.

3. How is the monthly premium determined for COBRA? The monthly premium for COBRA is typically based on the total cost of the health plan, which includes the portion previously paid by the employer and the portion previously paid by the employee.

4. What types of events make someone eligible for COBRA coverage? Eligibility events include job loss, reduced work hours, death of the covered employee, divorce or legal separation from the covered employee, and more.

5. Can I apply for a COBRA subsidy? Under certain circumstances, you may be eligible for a COBRA subsidy if you lose your job and meet specific criteria.

6. Are COBRA subsidies subject to change? Yes, the availability and details of COBRA subsidies can change over time, so it’s important to stay informed about the latest regulations and programs.

7. How long can I keep my COBRA coverage? COBRA coverage typically lasts for 18 to 36 months, depending on the reason for eligibility.

8. What happens if I miss a COBRA premium payment? Missing a premium payment may result in the termination of your COBRA coverage.

9. Are COBRA costs tax-deductible? In some cases, you may be able to deduct COBRA premiums from your federal taxes. It’s advisable to consult a tax professional for guidance.

10. How do I apply for COBRA coverage and subsidies? To apply for COBRA coverage and potential subsidies, contact your employer’s benefits administrator or the entity responsible for COBRA administration in your state.


Understanding your COBRA costs is an essential part of your healthcare planning, especially during times of job transition. Our COBRA Cost Calculator provides you with an estimate of your monthly COBRA expenses, factoring in both the monthly premium and any subsidies. This tool is a valuable resource to help you make informed decisions about continuing your health insurance coverage under COBRA.

Leave a Comment