What COBRA actually costs in 2026

COBRA lets you keep your employer health plan after you quit. It's expensive, but sometimes simpler than the marketplace.

Here's what it actually runs in 2026.

This is not financial advice. This article is so you can budget COBRA into your quit number.

The actual cost

KFF's 2025 Employer Health Benefits Survey found average single coverage at $8,951/year in 2024. That's $746/month. But your employer was paying 73% of it. You paid the rest through payroll.

COBRA forces you to pay the full premium plus a 2% admin fee. $8,951 × 1.02 = $9,129/year. That's $761/month for single coverage.

Family coverage is brutal. Average was $25,572/year in 2024. With the fee: $26,083/year or $2,174/month.

The actual hit to your budget

COBRA doesn't cost $761/month on top of your normal burn. It costs the difference between what you paid before and what you pay now.

When employed, you paid roughly 15% of the $8,951 premium out of pocket. That's about $1,368/year. COBRA is the full $9,129.

Actual cost: $9,129 minus $1,368 = $7,761/year, or about $647/month extra.

Round it to $650–$812/month depending on what you used to pay and where you live. Use $812 when budgeting. Conservative wins.

Family coverage: employer covered 67% of $25,572, so you paid $8,439/year. COBRA is $26,083. The delta: $17,644/year, or $1,470/month extra. That's why family COBRA kills most people's budgets.

How long you get it

COBRA runs 18 months max from the day you lose coverage. Two phases:

Election window: You have 60 days from job end to elect. Miss this and you lose COBRA forever. The clock doesn't stop.

Coverage: Elect, and you get up to 18 months. Premium stays flat (some states tweak it slightly). At 18 months, you're off COBRA and need something else, probably the marketplace.

Most people use it 6–12 months while job searching, then switch to marketplace or a new employer plan. Some keep it the full 18.

COBRA or marketplace. Which wins

COBRA isn't always cheapest. The ACA marketplace can beat it, especially if your income drops after quitting.

Choose COBRA when:

• You want your same doctors and plan. COBRA doesn't make you switch.
• You have high medical needs. No waiting periods, no pre-existing exclusions.
• You're quitting for 6 months or less. COBRA's math usually wins in short windows.
• Your income is high enough that you get no marketplace subsidies anyway.

Choose marketplace when:

• Your income drops after quitting. Freelancing half your old salary or taking time off means income-based subsidies cut your cost hard.
• You're going self-employed or have variable income. The marketplace expects this.
• COBRA is a lot more expensive than open market quotes.
• You want to shop plans instead of staying locked in.

Quit early in the year and get marketplace quotes. Compare real numbers. If you're freelancing (low income, more subsidy) versus job searching (no income, max subsidy), the math shifts.

Regional variation

That $761 average hides real variation. California, Massachusetts, New York: $900–$1,200/month single coverage. Low-cost states: $600–$800/month.

KFF is national average. Your state and employer plan determine your actual cost. When you get the COBRA election notice from HR, it has your exact premium.

The deadline is hard

60 days from your last day to elect. Miss it and COBRA is gone. You can't get it back.

HR sends the election notice the week after you quit. Read it. Write down the deadline. Set a calendar reminder for day 30. Don't skip this.

Even unsure? Elect it. You can wait 45 days after electing before paying. It's reversible. The missed deadline isn't.