COBRA Cost Calculator
Estimate what a departing employee will actually pay to continue coverage — by tier, with or without the administrative fee.
Run it once per tier — employee-only, employee+spouse, employee+child(ren), and family each carry their own premium.
Enter the plan’s full monthly premium for one tier at a time.
What the departing employee pays
One formula, a handful of exceptions worth knowing.
COBRA premiums are not negotiated — they’re a fixed percentage of what the plan already costs.
The 102% Rule
Federal law lets a plan charge up to 102% of the full premium — both the employer’s and the employee’s normal share — for COBRA continuation coverage. The extra 2% covers administrative cost; it’s optional, not required, though most third-party administrators apply it by default.
The 150% Exception
When a qualified beneficiary receives a Social Security disability determination, the plan may charge up to 150% of the premium for months 19 through 29 of that extended coverage — the one case where the standard 102% cap goes higher.
Send us your renewal.
We’ll tell you whether it looks competitive, where we see opportunity, and the five questions we’d put to your carrier. No cost, and no obligation to move anything.
The renewal letter
Your current plan summary
Contribution split by tier
Enrolled counts by tier
Four documents — two more if your group is 50 or more. Nothing else; every extra one is a reason to postpone.
An independent employee benefits consulting firm. We look at the entire benefits program — cost, plan performance, risk and administration.
Bloomfield Hills, MI 48304
248.370.8853
Colorado Springs, CO 80921
719.425.2649
Houston, TX 77084
281.404.5670
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