Then the paperwork arrives, and the next shock hits: the price of keeping your health insurance through COBRA.
For millions of Americans between jobs, that single number often decides whether they see a doctor this year or gamble on going without.
COBRA lets you stay on your former employer's health plan for up to 18 months in most cases.
The catch is that you now pay the full premium yourself — the part your employer used to cover, plus your own share, plus a small administrative fee.
That shift is why the sticker price feels like a punch.
According to KFF's annual survey of employer health benefits, the average family plan runs more than $25,000 a year, with employers covering most of it.
On COBRA, that entire bill can land on you — roughly $2,000 or more a month for family coverage, and several hundred for an individual.
Your specific number depends on your old plan, your location, and whether it was a single or family policy.
If you lost coverage because of a layoff or reduced hours — not because you quit or were fired for cause — you may qualify for a federal premium subsidy that covers a large chunk of the cost.
These subsidies have appeared in past downturns and can cut your bill dramatically.
Ask your former HR department or check HealthCare.gov to see what applies to your situation.
Before you write that first check, run the numbers on alternatives.
A marketplace plan through HealthCare.gov often costs less, especially if your income dropped this year, because you may qualify for tax credits.
Losing job-based coverage opens a special enrollment window, usually 60 days, so you don't have to wait for open season.
Medicaid is another option in many states if your income fell far enough.
Also check whether you actually need the same plan.
If you're generally healthy and mainly want protection against a catastrophe, a lower-tier marketplace plan with a high deductible can cost a fraction of COBRA.
If you have ongoing prescriptions or a doctor you can't leave, staying put may be worth the premium.
You typically have 60 days from the date your coverage ends to elect COBRA, and 60 days to enroll in a marketplace plan after losing job-based coverage.
Miss both and you could be locked out until next year.
When in doubt, elect COBRA to preserve your options, then switch if you find something cheaper — you can cancel later.
Don't assume the first quote is the final word.
Call your state's insurance department, a navigator through HealthCare.gov, or a trusted benefits broker.
These services are free, and they regularly find people savings they didn't know existed.
The takeaway: COBRA is a safety net, not a bargain.
Treat that premium notice as a starting point for comparison shopping, not a bill you have to accept.
Final Thoughts
A few phone calls in your first week of unemployment can save you thousands over the year — and that's money you'll need for everything else.