What is the maximum COBRA premium?

• A. 90% of the plan cost
• B. 102% of the plan's cost
• C. 100% of the plan cost
• D. 110% of the plan cost

Answer: (B)

The amount a person can be charged for COBRA coverage is capped at the plan’s cost to provide the coverage plus a small administration fee. Specifically, the maximum premium is 102% of the plan’s cost. That 2% extra is there to cover administrative costs of continuing coverage under COBRA.

So, if the plan costs $1,000 to provide each month, the most you could be charged is $1,020. The options of 90%, 100%, or 110% don’t reflect this capped, administration-inclusive amount.