How is the COBRA self-payment calculated?
Under the COBRA law, the Trustees are permitted to base the self-payment on a formula, which is the Plan cost plus 2% for administration. For example, if you are covered under either Kaiser or PacifiCare, your monthly COBRA payment for continuation coverage is based on the applicable HMO premium cost, and prescription drug cost, plus 2% for administration. Note, for a disabled qualified participant, the premium for months 19 through 29 may be no more than 150% of the applicable non-COBRA premium.
