Lately we have been getting a number of emails and questions about what exactly a health insurance premium is.  Understanding what is a health insurance premium is important for anyone considering COBRA health insurance or any health insurance.  Basically all a health insurance premium is, is how much the health insurance costs every month.

In many cases, the health insurance premium for someone who is employed is largely subsidized by their employer.  This means that their employer pays the majority of the health insurance cost.  For example, many employers subsidize up to 80% of the health insurance premium which means that the employer only pays 20% of the cost.

If you are considering COBRA insurance it is important to completely understanding what is a health insurance premium because you will be responsible for paying the entire thing.  To calculate the cost of your COBRA insurance premium, add together what you pay monthly with what your employer pays.  Then add a 2% administration fee.  This information is normally found on your pay stub and can also be found out by contacting your plan administrator.