Payment for COBRA coverage
Beneficiaries may be required to pay for COBRA coverage. The premium cannot exceed 102
percent of the cost to the plan for similarly situated individuals who have not incurred a qualifying
event, including both the portion paid by employees and any portion paid by the employer before the
qualifying event, plus 2 percent for administrative costs. For qualified beneficiaries receiving the 11
month disability extension of coverage, the premium for those additional months may be increased to
150 percent of the plan's total cost of coverage.