When a job disappears, the health insurance usually disappears with it.
What many workers don't realize is that they get a short window to keep that same coverage through COBRA — and the price tag often lands like a second mortgage.
COBRA lets you stay on your former employer's health plan for up to 18 months in most cases.
The catch: your company used to pay a big chunk of the premium, and now you're on the hook for the whole thing plus a small administrative fee.
The average employer-sponsored family plan runs well over $20,000 a year, according to annual employer surveys.
Workers typically paid only a fraction of that out of their paychecks.
Switch to COBRA and you're suddenly staring at $1,500 to $2,000 a month or more for the same family coverage, depending on the plan and the state.
Individual plans bought on the ACA marketplace often cost less, sometimes dramatically less if your income qualifies for subsidies.
That's why financial counselors tell people to compare before they write that first COBRA check.
Losing a job counts as a qualifying life event, so you can enroll outside the normal open enrollment window.
The 60-day clock is the part that trips people up.
You generally have 60 days from the date your coverage ends to elect COBRA, and you can even wait and retroactively activate it if you end up needing care.
Miss the deadline, though, and the option is gone.
Many people assume COBRA is their only legal path, so they overpay for months before checking the marketplace.
A family of four earning a modest income could qualify for subsidies that cut a monthly premium by hundreds of dollars.
Dental and vision are separate decisions too.
Some employers bundle them into the COBRA offer, some don't.
Read the election packet line by line instead of skimming it.
One more thing worth knowing: if your former employer shuts down or drops its group plan entirely, COBRA can vanish overnight even if you paid.
That's another reason not to treat it as a long-term safety net.
If you're facing this decision, the practical move is simple.
Pull your old pay stub to see what you actually paid, get the full COBRA number in writing, then price a marketplace plan the same week.
Compare the deductible and the network, not just the monthly figure.
A cheaper premium with a sky-high deductible can sting if someone in the family needs real care.
A higher premium with a broad network can be worth it.
There's no universal right answer — only the one that fits your budget and your doctors.
Our take: COBRA is a bridge, not a destination.
Final Thoughts
Use the 60-day window to shop instead of panicking, because the gap between what you paid at work and what you'd pay alone is usually the single biggest money shock of a layoff.