Question on Cobra

Hey All! I was recently laid off my company.

Part of my severance agreement says:

“You will only be responsible for paying a portion of the COBRA premium that is equal to your contribution rate for your applicable medical, dental, and vision coverage as similarly situated active employees during the Enhanced Severance Pay Period. If you elect COBRA, you will be required to pay the applicable COBRA premium directly to the benefits administrator. Following the Enhanced Severance Pay Period, any continued health coverage pursuant to COBRA shall solely be at your cost.”

My Enhanced Severance period is ten (10) weeks.

I just went to sign up for COBRA on my benefits site, and the monthly cost is $659.63.

However, as an employee, my monthly benefits cost was only $256.53.

I would have expected the larger cost after my severance period when I’m responsible for all of it. Can anyone help with info as to why the cost is more than what I was paying as an employee? Is it that I pay the full rate and my former employer reimburses me? That seems odd but I’ve never been laid off before so I don’t really know how all this works.

Thanks!

submitted by /u/stargaze84
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