COBRA insurance in 2025 typically costs between $400 and $700 per month for individual coverage and between $2,000 and $3,000 per month for family plans. This cost includes the full premium your employer and you were paying before, plus a 2% administrative fee. Costs vary greatly by state and plan type, with some states like Vermont averaging as high as $1,275 per month for individual coverage, while others like Idaho can be as low as $307 per month. Family plans can sometimes exceed $4,000 per month depending on the employer's original plan. The main reason COBRA is expensive is that you pay the full premium, including the employer's contribution, plus the administration fee, which often results in paying 102% of the total premium.
Key Factors Influencing COBRA Cost
- You pay the entire premium of the employer-sponsored plan, including the share your employer used to pay.
- There's an additional 2% administration fee on top of the premium.
- Geographic location dramatically affects costs, with significant differences between states and even within regions of the same state.
- Plan type matters, where PPO plans tend to be more expensive than HMOs.
Cost Ranges
- Individual: $400 to $700 per month (national average around $438).
- Family: $2,000 to $3,000 per month (average around $1,997).
- Variation by state example: Vermont $1,275 monthly, Idaho $307 monthly.
- Some employer plans may exceed these ranges.
This explains why COBRA can be much more expensive than what individuals might have paid while employed, as the employer's subsidy is no longer in place, making it a potentially costly way to continue health coverage after employment ends.
