Why can COBRA cost more than my payroll deduction?

A payroll deduction may show only the employee share. Under COBRA, the qualified beneficiary may pay the employee share, the former employer contribution, and a permitted administration charge.

Does voluntarily ending COBRA create a Marketplace Special Enrollment Period?

Generally no. Voluntarily ending COBRA early does not by itself create a Marketplace Special Enrollment Period. Exhausting COBRA may qualify.

How Much Does COBRA Cost in 2026?

Q: How is a COBRA premium calculated?

For standard federal COBRA, a plan may generally charge up to 102% of the applicable total plan premium. The election notice or plan administrator provides the actual amount.

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Quick answer: Under standard federal COBRA, a group health plan may generally charge up to 102% of the applicable total plan premium. That can include the employee share, the amount the employer previously contributed, and up to a 2% administration charge. Your election notice or plan administrator—not a national average—provides your actual premium.

The COBRA cost formula

(employee contribution + employer contribution) × administration factor

For a plan charging the full amount generally permitted for standard federal COBRA, the factor is 1.02. A plan may charge less. Different rules can apply during a disability extension, so confirm the amount in the plan documents.

Part	What it means
Employee share	The portion that may previously have been deducted from your pay.
Employer share	The portion the employer may previously have paid toward the same coverage.
Administration charge	For standard federal COBRA, up to 2% may generally be added.

The U.S. Department of Labor explains this in its COBRA continuation coverage FAQs.

Where to find your actual premium

Check your COBRA election notice, benefits portal, or a written response from the plan administrator. Ask the administrator to identify the coverage tier, monthly premium, payment instructions, and due dates.

Do not treat an online estimate as a quote. National benchmarks may differ substantially from your plan.

What to compare besides premium

Total annual cost, not premium alone
Deductible and out-of-pocket amounts already accumulated
Doctors, hospitals, prescriptions, and ongoing treatment
The expected length of the coverage gap
Separate COBRA and Marketplace deadlines

Verify rather than assume that network, formulary, deductible, and other terms remain unchanged. Use the plain-English cost-sharing glossary when a plan term is unclear.

Marketplace costs and timing

Marketplace assistance depends on expected annual household income and tax-household information. Use HealthCare.gov’s current savings guidance for an official determination. Losing job-based coverage may create a Marketplace Special Enrollment Period, generally for 60 days before or after the loss. COBRA follows a separate clock.

Voluntarily ending COBRA early generally does not create a new Marketplace Special Enrollment Period. Exhausting COBRA may qualify. See HealthCare.gov’s COBRA guidance.

Do not confuse other products with Marketplace coverage

Marketplace plans are ACA-compliant individual major-medical coverage. Short-term limited-duration insurance, fixed-indemnity products, and health-care sharing arrangements have different benefits, exclusions, and protections and should not be treated as equivalent substitutes.

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Frequently asked questions

How is a COBRA premium calculated?

A plan may generally charge up to 102% of the applicable total plan premium for standard federal COBRA. The election notice controls.

Why is COBRA higher than my payroll deduction?

Your deduction may have shown only the employee share. COBRA may include both shares and a permitted administration charge.

Does voluntarily ending COBRA open Marketplace enrollment?

Generally no. Voluntary early termination does not itself create an SEP. Exhaustion or another life event may qualify.

Related resources

Primary sources

Disclosure: General educational information only; not legal, tax, or medical advice, an eligibility decision, or a binding quote. Caden Douglas is not HealthCare.gov and is not affiliated with or endorsed by a government agency. Caden Douglas may receive insurer compensation. Appointments and products vary, and he does not represent every plan. Confirm costs, deadlines, benefits, and eligibility with the responsible plan, carrier, Marketplace, or agency. Report corrections through douglasinsurancegrp.com.