Key Takeaways
- Full premium payment
- Higher monthly cost
- Temporary health coverage
- Employer plan continuation
- Short term safety net
When you leave your job or lose the employer sponsored health insurance then you may be offered COBRA health insurance. This will allow you to keep the same health plan temporary but the cost can be surprisingly high. Many people think that COBRA health insurance will cost them and is it really worth it or not.
In this detailed guide we will break down everything for you. You will get to know about COBRA health insurance costs, including the average COBRA insurance premium in 2025. You can also learn why this is so expensive and how you can compare this plan to the other plans like Obamacare and private insurance.
COBRA Health Insurance – Basic Information
COBRA stands for Consolidated Omnibus Budget Reconciliation Act. Is a federal law that lets the employees continue their workplace health insurance for a limited time after the job loss, reduction in hours or other qualifying events.
You can keep the same health plan you had through your employer for up to 18 or 36 months depending on the situation. The main difference? You now have to pay the entire premium yourself both your share and your employer’s share plus a small administrative fee.
That’s why COBRA often feels very expensive as compared to the time when you were employed.
COBRA Health Insurance – Cost
The cost of the COBRA health insurance varies based on your employer’s plan, coverage level and the number of people on your policy.
In 2025, the average COBRA health insurance cost per month is
- Individual coverage cost you around $650-$750 per month
- While the family coverage can cost you around $1800-$2200 per month
All these figures can be higher or lower depending on your education and healthcare plan type.
For example, COBRA health insurance costs in Texas might differ from other states but it generally follows the same national trend, that employees must pay the full premium without employer help.
COBRA Health Insurance Average Cost 2025
According to 2025 data the COBRA health insurance average continued to rise due to increasing healthcare expenses and insurance premiums.
Let’s have a quick overview of estimated average COBRA cost for 2025
| Coverage Type | Average Monthly Cost (2025) | Annual Cost (Estimated) |
| Individual | $720 | $8,640 |
| Family | $2,050 | $24,600 |
These costs include the employees portion of the premium, employer portion which you pay now an administration fee that is usually 2%.
So if your employer previously paid $1200 and you paid $300 for a family plan, your COBRA monthly premium becomes $1500 +2% that is equal to $1530 per month
Why Is COBRA Health Insurance So Expensive After Leaving a Job?
There are so many people who are shocked at how expensive COBRA insurance is once they lose their job. The main reason is simple that you are paying both parts of the premium.
When you are employed your employer often pays 70 to 80% of the total premium. Under COBRA the cost shifts entirely to you and you have to pay all the premium amount.
How Much Does Life Isurance Cost?
For example,
- The total monthly plan cost $1000
- You paid while employed $200
- Employer paid $800
- Under COBRA now you have to pay a $1000 +2% administration fee that is equal to $1020.
That is why COBRA feels so expensive and it is the real cost of your health coverage without employer help.
COBRA Health Insurance Calculator
If you want an exact estimate, you can use a code for a health insurance calculator online. These calculators can ask for your previous monthly employee premium, total employer plan cost from your HR department and the coverage type if you buy the individual or family plan. The calculator will then estimate your new monthly COBRA payment, including the 2% administration fee.
Is It Worth It to Get COBRA Insurance?
Whether COBRA is worth it or not, it depends on your situation. The plan can be worth it if you
- If you need continuous coverage between jobs
- You have ongoing treatments or prescriptions
- You want to keep your same doctor and network
- You are close to meeting your annual deductible
COBRA may not be good for you if
- You can find cheap alternatives like ACA marketplace plans
- You are healthy and rarely use insurance
- You qualify for subsidised coverage under Obamacare.
Is COBRA More Expensive Than Obamacare?
In most cases, yes COBRA is more expensive than Obamacare. That is because corporations do not include government subsidies while Obamacare offers premium tax credits that reduce your cost.
For example, the average ACA silver plan with subsidy will cost you one $50-$300 per month
And the average scooper plan will cost you $700-$1000 per month.
However, COBRA provides identical coverage to your employer plan which can include better networks and lower deductible than some ACA options.
COBRA Prices Compared to Private Plans
Compared to the private health insurance plan COBRA can seem overpriced but that is not always the case. Private plans can have lower monthly costs but they often come with higher deductibles, narrower networks and limited prescription coverage. So if you value keeping your current doctors and plan benefits, the COBRA can still be a reasonable short term solution even if it costs you more.
COBRA Health Insurance Cost In Texas
The COBRA health insurance caused in Texas follows the same federal rules as elsewhere. However, if you work for a small business with fewer than 20 employees you can qualify for Texas state continuation, which offers up to 9 months of coverage instead of COBRA’s 18.
Average COBRA costs in Texas 2025
- Individual plan can cost you $700 per month
- And the family plan will cost you $1950 per month.
Final Thoughts
COBRA health insurance offers you a peace of mind and continuity of care but it is undeniably expensive. In 2025 the average COBRA cost per month can cost individuals that ranges from $650-$750 while family can be around $2000.
But keep in mind that if you cannot afford COBRA then explore the affordable care act or private health insurance plans, there are so many of which offer subsidies that make them cheaper. However, if you’re not in a medical transition or awaiting new job coverage then COBRA can be valued as a short term solution.
Protect your loved ones, build peace of mind, and plan your future confidently with M-life Insurance.
FAQS
Yes, it can be worth it if you just lost your job and you need to keep your same health insurance for a short time. COBRA will let you stay on your old plan and you don’t lose coverage while you look for a new job or new insurance but it can be expensive so it’s best for the short term use.
Yes, COBRA usually costs more than Obama plans. With COBRA you pay the full payment of the insurance yourself but with Obamacare the government can help pay a part of your course to discounts or subsidies.
In so many cases yes the COBRA can cost more than some private health insurance plans because you are paying for both your share and the part your employer used to pay. Private plans can have cheaper monthly payments but sometimes they have higher deductible or fewer doctors to choose from.
COBRA health insurance is not free. You must have to pay the entire premium yourself, the part you used to pay and the part your employer used to pay plus a small administration fee. That is why it feels much more expensive after you leave your job.
Because when you worked, your company paid most of your health insurance cost. After you leave that help stops and you have to pay hundred percent of the cost on your own. That’s why COBRA becomes much more expensive once your job ends.
Joyce Espinoza, Expert Life Insurance Agent
Joyce Espinoza is a trusted life insurance agent at mLifeInsurance.com. She’s been in the insurance industry for over ten years, helping people, especially those with special health conditions to find the right coverage. At MLife Insurance, Joyce writes easy-to-understand articles that help readers make smart choices about life insurance. Previously, she worked directly with clients at Mlife Insurance, advising nearly 3,000 of them on life insurance options.