COBRA Example
Example 1: Total Health Plan
John Smith has health plan coverage through Total Health for himself and his family (associate
plus family). He currently pays $260 per month for this coverage (also viewed as $120 per
paycheck).
John has chosen to elect COBRA. Through THE COMPANY COBRA it will cost John 100% of the
health premium plus a 2% administrative fee. Therefore, John will now pay:
Associate contribution: $ 260
+
Company contribution: $ 740
$1,000 per month that John now must pay plus 2% administrative costs
COBRA TOTAL: $1,020.00 per month
Example 2: Total Health Plan
John Smith has health plan coverage through Total Health for himself only. He currently pays
$108.33 per month for this coverage (also viewed as $50 per paycheck).
John has chosen to elect COBRA. Through THE COMPANY, COBRA it will cost John 100% of the
health premium plus a 2% administrative fee. Therefore, John will now pay:
Associate contribution: $ 108.33
+
THE COMPANY contribution: $ 316.67
$ 425.00 per month that John now must pay plus 2% administrative costs
COBRA TOTAL: $433.50 per month
Special Note:
Cobra administration will be handled by ADP Cobra Services through December 31, 2011.
Beginning January 1, 2012 cobra administration will be handled by UMR; transition
information will be forthcoming in the mail regarding the mailing address for premium
payment.