Why is my COBRA so expensive?

The cost of COBRA insurance is high because you are now paying the full health insurance premium, including the portion your previous employer was paying. Often times there is an additional 2\% administration fee for an insurance third-party administrator for processing the COBRA paperwork.

Is COBRA always expensive?

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. If you qualify for the tax credit, it can help lower your monthly payments.

Is COBRA cheaper than Obamacare?

The cost of COBRA insurance depends on the health insurance plan you had under your employer. COBRA costs an average of $599 per month. An Obamacare plan of similar quality costs $462 per month—but 94\% of people on HealthSherpa qualify for government subsidies, bringing the average cost down to $48 per month.

How much does COBRA cost for a single person?

COBRA premiums range depending on if you have an individual or family plan. An individual plan may cost about $558 per month while a family plan can cost $1,564….Average COBRA Premium Costs.

Plan Type	Monthly payroll deduction	Monthly COBRA premium
All individual	$101	$558
Individual HDHP	$85	$417
All family	$476	$1564

Is Cobra cheaper than private insurance?

Is COBRA cheaper than individual insurance? COBRA health insurance is usually more expensive than individual insurance, especially if you qualify for ACA plan subsidies. ACA subsidies reduce the cost of ACA plans. The subsidies are only eligible for ACA plans.

Is it better to do COBRA or marketplace?

Even if you love your current plan and prefer to take COBRA, it pays to visit the Marketplace and compare the costs. COBRA is generally considered the most expensive option but may be comparably priced to some plans depending on where you live and your level of coverage.

Is COBRA cheaper than Covered California?

Cobra is really expensive and you might not be able to change plans. Covered California can be priced much lower and you can change plans. If you qualify for a Covered Ca tax credit, it’s hard to justify paying full premium for Cobra.

Are COBRA payments tax deductible 2021?

Yes they are tax deductible as a medical expense. You can only deduct the amount of COBRA medical expenses on your federal income tax in excess of 7.5\% of your Adjusted Gross Income and then only if you itemize deductions.

How do I find out how much COBRA will cost me?

Locate the amount you contribute on your pay stub. Locate the amount your employer pays in the insurance enrollment paperwork or call the employer’s human resources department. Add the amount you contribute each month to the amount paid by your employer. Multiply the total monthly cost by the percentage you will pay.