Best COBRA Health Insurance Alternatives in 2024

COBRA, or the Consolidated Omnibus Budget Reconciliation Act, is a federal law that gives workers and their families the right to keep their employer’s group health plan after that insurance ends due to job loss or changes in the immediate family. COBRA plans can be very expensive and can cost between $400 and $700 per month per individual. Fortunately, there are ways to reduce the cost and alternatives to keep you and your family covered. 

How Much Does COBRA Cost Monthly?

If you are considering leaving your job or want to learn more about your health plan benefits and coverage, your human resources (HR) can tell you how much your COBRA premiums will be if you want to continue coverage. However, if you want to determine your premium without altering your employer, you can ask HR how much your employer is contributing to monthly coverage and then look at your pay stub to find out how much you're contributing each month. Once you add those two numbers together, add in 2% more for the survival fee to determine exactly how much plan continuation will cost.  

Below is an example of the calculation: 

1. Your contributions: $125 per paycheck X 2 ( paid twice a month) = $250 per month
2. Employer’s contributions: $400 per month
3. Totalt contributions ( employer + employee) = $650 per month
4. Service charge: $650 x 2% = $13 per month
5. COBRA Premium: $650 +$13 = $663 per month  

It is important to note that the total amount above is only reflective of COBRA coverage for one person (the employee). Therefore if you are looking for coverage for spouse and dependents, $663 would be multiplied by the number of additional family members you are covering.