COBRA Insurance: How It Works and What It Costs

COBRA continuation coverage typically lasts up to 18 months for job loss or reduced hours, and up to 36 months for qualifying dependents or certain other events such as divorce from a covered employee. The key tradeoff is cost: under COBRA, you pay the full premium, both the share you previously paid and the share your employer was covering, plus an administrative fee of up to 2%. According to KFF’s 2025 Employer Health Benefits Survey, employers covered 83% of individual premiums and 74% of family premiums on average, meaning COBRA can cost significantly more than what employees were used to paying. In 2026, average COBRA premiums range from approximately $400 to $700 per month per individual and can exceed $2,400 per month for family coverage depending on the plan. An important 2026 development: the enhanced ACA Marketplace premium tax credits that had been in place since 2021 expired at the end of 2025, meaning marketplace subsidies are now more limited and the COBRA vs. marketplace cost comparison has shifted for many individuals.

Long-term care insurance covers extended care services that Medicare and regular health insurance do not pay for, including help with daily activities at home or in a facility.

Do I Need Long-Term Care Insurance and What Is the Best Age to Buy It?

Whether you need long-term care insurance depends on your assets, family history, and how you plan to fund extended care—and the best time to buy is usually between ages 55 and 65.

Medicare Part A: What Does It Cover, When Does It Start, and What Is the Eligibility Age?

Medicare Part A covers inpatient hospital care and related services for most Americans starting at age 65, with enrollment deadlines that carry permanent penalties if missed.

Retirement Health Insurance Options: What Are Your Choices?

Retiring before Medicare at 65 means choosing among COBRA, the ACA Marketplace, a spouse's employer plan, or other options—each with different costs and coverage rules.

Medicare vs. Private Insurance: What Is the Difference?

Medicare is federal coverage for Americans 65 and older; private insurance differs in structure, premiums, out-of-pocket limits, and what is excluded from coverage.

Does Medicare Cover Assisted Living and How Do You Pay for It?

Medicare does not cover assisted living or custodial care—understanding that gap and the median cost of care is essential for retirement planning.

Life Insurance in Retirement: Do You Still Need It?

Life insurance in retirement depends on whether anyone still relies on your income, whether debts remain, and whether estate planning goals require a death benefit.

When Should You Buy Life Insurance?

The best time to buy life insurance is when you are young and healthy—premiums rise with age and health events can make coverage unavailable.

Can Life Insurance Be Used as Collateral?

Life insurance can secure a loan through a collateral assignment, allowing lenders to recover the outstanding balance from the death benefit if needed.

COBRA Insurance: How It Works and What It Costs

Related Topics