When a layoff hits, the first question is usually about the next paycheck.
The second, arriving fast, is about health insurance.
For millions of Americans, the bridge between jobs is a program called COBRA, and the price tag on that bridge has quietly climbed into luxury territory.
COBRA lets you keep your employer’s health plan for up to 18 months after leaving a job.
The catch has always been the same: you pay the full premium yourself, plus a small administrative fee.
Your employer’s share, the part that made coverage feel affordable, disappears.
Average annual premiums for employer-sponsored family coverage have pushed past $25,000 in recent surveys, with workers typically covering only a fraction of that while employed.
For a family, that can mean $1,800 to $2,200 a month, or more in high-cost states.
Deductibles have risen for years, so a COBRA household can pay four figures a month and still owe thousands before most coverage kicks in.
Prescription costs, copays, and out-of-network bills stack on top.
The result: coverage that looks comprehensive on paper but feels like a second rent payment.
For anyone weighing COBRA, three numbers decide the answer.
Second, your deductible and out-of-pocket maximum.
Third, what a similar plan costs on the Affordable Care Act marketplace, where subsidies can dramatically lower the price after a job loss.
Losing employer coverage usually opens a special enrollment window, so the comparison is worth running within 60 days.
COBRA enrollment deadlines are strict, and missing one can leave you uninsured until the next open enrollment.
If you let coverage lapse, a medical emergency can turn into five-figure debt.
Even a short gap carries real financial exposure.
None of this means COBRA is always wrong.
If you have ongoing treatment, a trusted doctor network, or a condition that makes switching risky, the continuity can outweigh the cost.
But treating it as the default choice is how households burn through savings they will need later.
The bigger picture is that job-based coverage is doing less of the heavy lifting than it once did.
Employers still subsidize, but workers absorb more of every increase.
When a layoff arrives, that shift becomes visible all at once, in a single monthly bill that most families never budgeted for.
So before saying yes to the paperwork, price the alternatives.
Check the marketplace, compare total yearly costs rather than monthly premiums alone, and ask whether a cheaper plan with a higher deductible actually fits your health needs.
The cheapest option is not always the lowest sticker price.
Our take: COBRA was designed as a safety net, but rising premiums have turned it into a high-end product many laid-off workers cannot afford.
Final Thoughts
Treat it as one option among several, and run the numbers before the deadline forces your hand.