Calculating COBRA HRA Rates

HRA COBRA Rate Calculation | Question Of The Day

How to Calculate HRA COBRA Rates Accurately | 1706 Advisors And UBA

When it comes to providing continued health benefits, HRA COBRA Rate Calculation for Health Reimbursement Arrangements (HRAs) can be a complex task. UBA in association with 1706 Advisors has down the best approach to determine these rates accurately.

Q. What is the best way to calculate COBRA rates for an HRA?

A. The best way to determine the HRA COBRA rate is for the group to see what the HRA reimbursed on a per employee/family basis for each of the last three years. For example, if the HRA, on average, reimbursed $600 for single employees and $1,200 for families, the monthly COBRA premiums could be set at $50 for single and $100 for family (plus the 2% COBRA surcharge). If the group has access to an actuary (unlikely), they could also work with the actuary to set the COBRA rates. But assuming no free actuarial services are available, I recommend focusing on the historical cost of the HRA in setting future COBRA premiums.

Answers to the Question of the Week are provided by Kutak Rock.


Understanding and setting HRA COBRA Premium Estimation COBRA rates need not be an insurmountable challenge. With a clear look at historical data and the right expertise, employers can navigate this process with confidence. Turn to 1706 Advisors for all your HRA COBRA rate calculations and ensure compliance and accuracy in your benefits offerings.

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