Example: COBRA Premium Calculation

COBRA premium calculations use the formula: COBRA amount × pay frequency ÷ 12 + administrative fee.

For example, when an employee is paid weekly and has a COBRA amount of 60.00 USD and a 2 percent administrative fee, calculate the monthly premium as follows:

60.00 USD (United States Dollar) × 52 weeks = 3120.00USD3120 USD ÷ 12 = 260.00 USD (monthly amount)260.00 USD × .02 = 5.20 USD (administration fee)260.00 USD + 5.20 = 265.20 USD (COBRA premium due)

The premium amount that appears on the COBRA Coverage Revisions form and the elected total amount that appears on the COBRA Coverage Selection form are both monthly premium amounts. The Amount or Rate field on the Plan Master Rates Window form displays a pay period amount.