COBRA Premium
Calculate continuation premium from full plan cost and administrative load.
Description
A continuation-premium model combines employee and employer monthly amounts, then adds a supplied administrative percentage.
A continuation-premium model combines employee and employer monthly amounts, then adds a supplied administrative percentage. Duration determines a nominal total.1
Calculate continuation premium from full plan cost and administrative load.
When to use COBRA Premium
Use this tool to calculate continuation premium from full plan cost and administrative load.
Prepare the supplied policy terms, dates, assumptions or recorded indicators requested. Keep monetary amounts on one currency basis and select the applicable thresholds separately.
How to use COBRA Premium and understand its results
- Prepare the supplied policy terms, dates, assumptions or recorded indicators requested. Keep monetary amounts on one currency basis and select the applicable thresholds separately.
- Enter activeEmployeePremium, employerSubsidy, administrativePercent, continuationMonths using the field table and calculation rules, then run the tool.
- Read baseContinuationPremium, monthlyPremiumWithAdmin, totalContinuationPremium. The explanation below defines the units, signs, ordering and any flags or placeholder values.
- If the tool reports an input issue, correct the values and run it again. Apply the stated assumptions when interpreting a successfully returned result.
| Input field | Meaning | Value type; see rules below | Requirement |
|---|---|---|---|
| activeEmployeePremium | Active employee premium | number; minimum: 0 | Required |
| employerSubsidy | Employer subsidy | number; minimum: 0 | Required |
| administrativePercent | Administrative load (%) | number; minimum: 0 | Required |
| continuationMonths | Continuation months | integer; minimum: 0 | Required |
Enter nonnegative monthly amounts/admin rate and nonnegative integer continuation months. Return base, loaded monthly premium and total.
base=employee+subsidy; monthly=base(1+admin/100); total=monthly×months Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.
| Output field | Meaning | Value type |
|---|---|---|
| baseContinuationPremium | Monthly continuation premium | number; minimum: 0 |
| monthlyPremiumWithAdmin | Monthly premium with administration | number; minimum: 0 |
| totalContinuationPremium | Total continuation premium | number; minimum: 0 |
{
"input": {
"activeEmployeePremium": 200,
"employerSubsidy": 800,
"administrativePercent": 2,
"continuationMonths": 18
},
"output": {
"baseContinuationPremium": 1000,
"monthlyPremiumWithAdmin": 1020,
"totalContinuationPremium": 18360
}
}Limitations and assumptions
No COBRA eligibility, statutory administrative cap, election period or actual continuation right is checked.
Numeric inputs must be finite. Follow the calculation-specific rules for overflow, underflow and exceptional cases. Missing required fields, extra fields, wrong value types and violations of the calculation rules are input errors.
Alternative or Complementary methods
Use Coverage Affordability: Test coverage affordability using a caller-supplied income percentage. For a complementary task, use Waiting-Period Credit: Apply prior creditable coverage to a waiting period.
References
-
COBRA Premium — tool.io
Similar or alternative tools
- Coverage Affordability
Test coverage affordability using a caller-supplied income percentage.
- Waiting-Period Credit
Apply prior creditable coverage to a waiting period.