how to determine the cost of cobra?
Calculate the former employeeâs premium by adding up to a 2 percent administration fee to the current premium rate. COBRA beneficiaries pay the full health insurance premium plus a 2 percent administration fee. If monthly premiums for employees with single coverage are $200, for example; the COBRA beneficiary pays 102 percent of that amount, or $204. Spouses and children also may be covered. The same rule applies for beneficiaries with dependent coverage.