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COBRA is almost universally more expensive for individuals because they have to pay both their premium and whatever premium the company was paying.
by omgwtfbyobbq 2y ago
COBRA is almost universally more expensive for individuals because they have to pay both their premium and whatever premium the company was paying.
- khuey 2y agoThe company was also paying its share of the premium with pre-tax dollars whereas the ex-employee has to make that share up with their post-tax dollars.
- inferiorhuman 2y agoThe cost of COBRA is whatever your plan's premium was plus an optional 2% administrative fee. So yeah, you're not getting your employer's subsidy but you're not paying two premiums.
- omgwtfbyobbq 2y agoThat's only if the company chooses to continue paying your premiums, and I've never seen that after leaving a job. I'm my experience, you'll pay 1.5-3x what you were paying while with the company.
- alistairSH 2y agoEmployer gets to pay with pre-tax dollars. The ex-employee does not. So, for most of us, that’s a ~30% increase in cost for the amount the employer previously covered.