Cobra Cost Calculator

The COBRA Cost Calculator helps users estimate their monthly COBRA costs by considering their current premiums, employer contributions, administration fees, and coverage duration, and provides calculations on cost increases and total expenses.

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How to Use the COBRA Cost Calculator

This guide will help you to effectively use the COBRA Cost Calculator to determine your new insurance costs under the COBRA plan.

Step 1: Gather Required Information

Before you start, ensure you have the following information at hand:

  • Current Monthly Premium: The amount you currently pay monthly for your insurance.
  • Employer’s Premium Contribution (%): The percentage of your premium that your employer contributes.
  • Coverage Type: Determine whether you have ‘Individual’ or ‘Family’ coverage.
  • Administration Fee: The fee charged by the plan administrator for managing COBRA benefits.
  • Coverage Duration (months): The number of months you wish to be covered under COBRA (up to a maximum of 18 months).

Step 2: Enter the Information

Once you have gathered all necessary information, proceed to enter the following details into the calculator:

  • Current Monthly Premium: Input this as a number, making sure it is zero or above.
  • Employer’s Premium Contribution (%): Enter the percentage contributed by your employer, ensuring the value is between 0 and 100.
  • Coverage Type: Select ‘Individual’ or ‘Family’ based on your current coverage.
  • Administration Fee: Enter the administration fee as a numeric value; this should not be negative.
  • Coverage Duration (months): Input the intended duration of COBRA coverage, ensuring it is between 1 to 18 months.

Step 3: Review the Calculated Results

Once all data is entered, the calculator will provide the following results:

  • Monthly COBRA Cost: This is calculated by adding your monthly premium to the administration fee, formatted in USD currency with two decimal places.
  • Previous Employer Contribution: The monetary value of what your employer used to contribute, calculated as a percentage of your monthly premium.
  • Monthly Cost Increase: The difference between your new monthly COBRA cost and your previous cost, reflecting the increase you will experience.
  • Total COBRA Cost: The total cost of COBRA coverage for the selected duration, in USD currency.
  • Percentage Increase in Cost: The percentage by which your insurance cost will increase under COBRA, shown with one decimal place.

Step 4: Interpret the Results

With the calculated results, you can now:

  • Understand the financial impact of transitioning to COBRA coverage.
  • Plan for the increased expenses associated with retaining similar coverage.
  • Evaluate whether continuing with COBRA is a viable option for your situation.

This COBRA Cost Calculator tool provides a comprehensive summary of the monetary changes you can expect and assists you in making informed decisions regarding your health coverage continuity.