COBRA premium calculator: the 102% maximum.

What 102% is 102% of

The Department of Labor's COBRA guide for employees says the maximum amount a plan may charge "cannot exceed 102 percent of the cost to the plan for similarly situated individuals covered under the plan who have not incurred a qualifying event." In calculating that figure the plan can include the costs paid by both you and your employer, plus an additional 2 percent for administrative costs. That is why the number on a COBRA election notice looks so much bigger than the payroll deduction people are used to. The employer was paying most of the bill all along, and COBRA hands you the whole bill.

The rule is a ceiling, not a price. A plan may charge less than 102%, and some do. The actual figure for your tier is printed on the election notice, which also states when payments are due and the consequences of paying late.

The 150% months

COBRA usually lasts 18 months after a job loss or reduction in hours. If a qualified beneficiary in the family is disabled, meets the requirements, and the Social Security Administration determined the disability before the 60th day of COBRA coverage, everyone in that family is entitled to an 11-month extension, for a maximum of 29 months. For those 11 months, months 19 to 29, the plan may charge up to 150 percent of the plan's total cost of coverage. The tool applies 150% to the base cost, not to the 102% figure, because that is how the guide words it. It applies the standard 102% to every other month, including months 30 to 36 if you enter them (coverage can last up to 36 months after a second qualifying event or for other event types).

Worked example with hypothetical numbers

A plan's total monthly cost for single coverage is $780. The employer paid $585 and the employee paid $195 through payroll. The maximum COBRA premium is $780 × 1.02 = $795.60 a month, which is $600.60 more than the $195 deduction. Over 18 months the ceiling is $795.60 × 18 = $14,320.80.

Now add a disability extension through month 29. Months 19 to 29 can be charged up to $780 × 1.5 = $1,170.00 each, so the ceiling for 29 months is $14,320.80 + 11 × $1,170.00 = $27,190.80. Run the same numbers in the form above to see it. The two mistakes people make here are applying 150% to the 102% figure (which would give $1,193.40) and applying 150% to all 29 months.

Rules about when and how you pay

• Not at election. The plan cannot require a premium when you make the election. It must give at least 45 days after you elect for the initial payment.
• Grace period. The plan should set due dates for later payments but must provide a minimum 30-day grace period for each. If you pay inside the grace period the plan may cancel coverage until payment arrives and then reinstate it retroactively to the start of the period.
• Short payments. If a payment is incorrect but not significantly less than due, the plan must notify you of the deficiency and allow a reasonable period to pay the difference; 30 days is considered reasonable.
• Monthly payment. The plan must allow monthly payment if you ask, and may allow other intervals.
• Changes. Plans may raise the premium if the cost of the plan increases, but must generally fix premiums before each 12-month cycle.

Common mistakes and what this does not cover

• Applying 102% to only the employee's old payroll share.
• Adding the 2% twice, once to the cost and again to the total.
• Entering the wrong tier. Single, employee-plus-one and family have different costs.
• Assuming the plan must charge exactly this number. It is a maximum.

The calculator does not know your plan's real rate, whether you qualify for COBRA, any state continuation law that applies to small employers, or how COBRA compares with a Marketplace plan. For that comparison, the ACA subsidy cliff calculator and health plan comparison tool are linked below. Figures stay in your browser.

Sources

• U.S. Department of Labor EBSA: An Employee's Guide to Health Benefits Under COBRA — 102% cap, 150% disability months, 45-day first payment, 30-day grace, 18/29/36 months, 20-employee threshold

Every figure and rule above was retrieved from these pages in October 2026. Agencies revise forms, codes and percentages, so confirm anything that affects a claim, a filing or a deadline against the current official page.

Frequently asked questions

How much can a plan charge for COBRA?

Up to 102 percent of the cost to the plan for similarly situated individuals who have not had a qualifying event. The plan can include both the employee's and the employer's cost, plus 2 percent for administration. It can charge less.

Why is COBRA so much more than my paycheck deduction?

Because the cap is based on the full cost of coverage, not just your share. As an employee the employer usually paid part of the cost. Under COBRA the plan may charge you the combined cost plus the 2 percent.

When can the plan charge 150 percent?

Only during the 11-month disability extension, months 19 to 29 of coverage. The premium for those additional months may be increased to 150 percent of the plan's total cost of coverage. It requires an SSA disability determination made before the 60th day of COBRA coverage.

Can the COBRA premium go up during coverage?

Plans may increase the premium if the plan's cost increases, but they must generally fix premiums before each 12-month premium cycle. The election notice should describe rates and due dates.

Do I have to pay when I elect COBRA?

No. The plan cannot require payment when you make the election and must give at least 45 days after you elect for the first payment.

Is there a grace period for later payments?

Yes. The plan must provide a minimum 30-day grace period for each payment after the first. If you pay within the grace period, the plan may hold coverage until payment arrives and then reinstate it retroactively to the beginning of the period.

Can I pay COBRA monthly?

Yes, if you ask. The plan must allow you to pay the required premiums on a monthly basis if you request it, and may allow other intervals such as weekly or quarterly.

Does COBRA apply to every employer?

COBRA generally applies to group health plans maintained by private-sector employers with at least 20 employees or by state and local governments. Many states have similar laws for plans of smaller employers, often called mini-COBRA. It does not apply to federal government plans or churches and certain church-related organizations.