Then the COBRA letter arrives, and the number at the bottom can feel like a second punch.
For a family of four, continuing that same workplace health plan often runs $1,800 to $2,400 a month in 2025, according to benefits consultants and published plan data.
That is mortgage money for many households.
Here is why the sticker shock is so brutal.
When you worked at that job, your employer typically covered 70% to 85% of the premium.
You only saw your share, maybe $150 to $500 a month taken from your paycheck.
Under COBRA, you pay the full premium plus a small administrative fee, usually 2%.
The 60-day clock is where people get tripped up.
You generally have 60 days from the date of your COBRA notice to enroll, and coverage can be backdated to the day your job-based plan ended.
That sounds generous, but it cuts both ways.
If you wait 55 days, then break a leg on day 56, you can still sign up and get those bills covered.
Miss day 60, and you are locked out for good unless you qualify for a special enrollment period elsewhere.
Most people do not need COBRA for the whole 18 months.
The smarter move is often to compare it against an ACA marketplace plan the same week the letter shows up.
Marketplace subsidies are based on your estimated 2025 income, and a layoff usually drops that income sharply.
In many states, a family earning $60,000 can qualify for significant tax credits that cut a silver plan's price well below the COBRA number.
Run the numbers on Healthcare.gov before you assume anything.
There are a few situations where COBRA genuinely wins.
If you have already met your deductible or out-of-pocket maximum for the year, switching plans resets that clock to zero.
If you are mid-treatment with a specialist you love, or you are pregnant, staying put can be worth the premium for a few months.
Some people also use COBRA as a bridge to Medicare or to a new job's waiting period.
Dental and vision are usually separate COBRA elections, so you can take medical and skip the rest.
If you become eligible for Medicare or a spouse's plan, COBRA typically ends early.
And if the old employer cancels its health plan entirely, COBRA dies with it, which sends you straight to the marketplace.
Some administrators require the first payment within 45 days of electing, and a single missed monthly premium can terminate coverage retroactively.
The honest take: COBRA is a safety net, not a default.
Treat that letter as a starting point for comparison shopping, not a bill you simply have to swallow.
Final Thoughts
Thirty minutes on the marketplace site can save a household thousands of dollars a year, and that is time well spent during an already stressful stretch.