COBRA Lets Employers Charge Up to 102% of the Full Cost of Coverage
The Fact
Under COBRA, workers who lose job-based health coverage can usually keep it, generally for up to 18 months, but the plan can charge up to 102% of the full cost of coverage — the employee's share plus the employer's share plus a 2% fee.
What This Means
After a layoff, you can keep your health plan, but you pay what your employer used to pay too. With average family coverage at $26,993 a year (BSF-0134), that would be about $2,294 a month.
Why It Matters
Losing a job can mean losing health coverage right when money is tightest.
Sources
U.S. Department of Labor, Employee Benefits Security Administration. “An Employee's Guide to Health Benefits Under COBRA.” https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/publications/an-employees-guide-to-health-benefits-under-cobra
(Monthly example calculated by The Broadside using BSF-0134.)