COBRA costs an average of $599 per month. An Obamacare plan of similar quality costs $462 per month—but with the government subsidies available, the average cost of an Obamacare plan on HealthSherpa is less than $10 per month.
How does COBRA insurance work in Arkansas?
Under the Federal COBRA Act, the State of Arkansas allows workers to keep their workplace insurance, if that insurance would end due to a qualifying event. This means workers in Arkansas have a right to continue their workplace insurance, even if they quit their jobs or were involuntarily terminated (getting fired).
How much does COBRA cost a month?
On Average, The Monthly COBRA Premium Cost Is $400 700 Per Person. Continuing on an employer's major medical health plan with COBRA is expensive. You are now responsible for the entire insurance premium, whereas your previous employer subsidized a portion of that as a work benefit.
How do I find out how much COBRA will cost?
You get paid twice per month, so your portion of the monthly premiums is $250. If your employer contributes $400 per month, the total cost of your job-based plan is $650 per month. To calculate your total monthly COBRA premium, add a 2% service charge to the $650 for a grand total of $663 per month.
How much does COBRA cost for a single person?
Plan Type Monthly payroll deduction Monthly COBRA premium
--------------- ------------------------- ---------------------
All individual $101 $558
Individual HDHP $85 $417
All family $476 $1564
Why is COBRA so expensive?
The cost of COBRA coverage is usually high because the newly unemployed individual pays the entire cost of the insurance (employers usually pay a significant portion of healthcare premiums for employees).
How do I find out how much COBRA will cost me?
- Your contribution: $125 per paycheck X 2 = $250 per month.
- Your employer's contribution: $400 per month.
- Total contribution: $250 + $400 = $650 per month.
- Service charge: $650 x 2% (or 0.02) = $13 per month.
- COBRA premium: $650 + $13 = $663 per month.
Is COBRA more expensive than regular insurance?
COBRA insurance is often more expensive than marketplace insurance, partly because there isn't any financial assistance from the government available to help you pay those COBRA premiums.