COBRA is one of the biggest sticker-shocks of leaving a job. The coverage is identical to what you had at work, but the price is not — because you're now paying the entire premium yourself. Here's exactly how COBRA cost is calculated in 2026, a realistic example, and how to tell whether you can do better.
How COBRA cost is calculated
COBRA isn't a subsidy or a discount. Your monthly cost is the plan's full premium — the share you used to pay plus the share your employer covered — plus an administrative fee of up to 2%. At most jobs the employer pays well over half the premium, so when that share lands on you, the price can more than double overnight.
A realistic cost example
Say your health plan's total premium was $1,020 a month, and at work you paid $260 while your employer covered $760. On COBRA you pay the whole $1,020 plus up to 2% ($20), so about $1,040 a month. Family coverage runs higher. Figures vary by plan, age, and location, but the pattern is the same: your cost jumps to the full premium.
How long COBRA lasts
COBRA is temporary. In most cases it runs up to 18 months (sometimes 36 for certain events), after which you'll need other coverage anyway. So even if you elect it, you're postponing the decision rather than solving it — which is a good reason to compare alternatives now.
Is a private PPO cheaper than COBRA?
Frequently, yes — for people who qualify. A private PPO is coverage you own rather than a continuation of your employer's plan, and premiums are often meaningfully lower while still offering a broad, see-any-doctor network. Whether it beats COBRA for you depends on your age, health, location, and which doctors you need to keep.
- COBRA: keeps your exact plan and deductible progress, but at full price
- Private PPO: often cheaper, nationwide network, enroll year-round
- Marketplace: may be cheapest if your income qualifies for subsidies
How to check your real numbers
You have about 60 days to elect COBRA, which is enough time to compare first. Write down your COBRA monthly cost and your must-keep doctors, then have a licensed advisor pull comparable private PPO options for your ZIP code. In a few minutes you'll see the price difference and whether your providers are covered — at no cost, because carriers pay the broker.
The bottom line
COBRA's price is simply the full cost of your old plan, which is why it stings. Before you pay it, get a free side-by-side comparison — many people find a private PPO that costs hundreds less per month for similar coverage.
