Then the paperwork arrives, and the number at the bottom of the page can feel like a second gut punch.
COBRA, the federal law that lets you keep your employer's health plan after leaving a job, has always been expensive.
But with health care premiums climbing and layoffs continuing across tech, media, and retail, more Americans are staring down that number right now.
And a lot of them are overpaying without realizing it.
Here's the catch most people miss: when you were employed, your company typically covered a big chunk of your premium.
Under COBRA, you pay both the employee and employer share, plus a small administrative fee, usually 2 percent.
That's why a plan that felt affordable at work can suddenly cost $600 to $800 a month for an individual and well over $2,000 for a family.
Employers get a tax advantage by paying part of your premium, and insurers get a guaranteed customer.
Nobody in that chain has a strong incentive to point you toward a cheaper option.
What actually helps is knowing the alternatives.
The Affordable Care Act marketplace is the big one.
If your income drops after a layoff, you may qualify for subsidies that make a marketplace plan far cheaper than COBRA.
Many people assume they make too much to qualify — but the math changes fast when you're unemployed.
You generally have 60 days to elect COBRA, and you can often sign up retroactively if you get sick during that window.
Some financial planners suggest waiting until you actually need coverage before paying, though you should confirm the rules with your plan administrator, since details vary.
Short-term health plans get marketed hard during layoffs, but read the fine print.
They can exclude pre-existing conditions and skip things like maternity or mental health coverage.
Medicaid is another option people overlook.
In the 40-plus states that expanded coverage under the ACA, adults with low income may qualify regardless of job status.
Applications are free, and you can check eligibility in minutes.
If you're married, compare adding yourself to a spouse's plan.
Open enrollment rules can be tricky, but a job loss usually counts as a qualifying life event, which opens a special enrollment window.
One more thing worth doing: call your old HR department and ask exactly what your COBRA premium covers.
Sometimes the number includes dental, vision, or life insurance you don't need or can buy cheaper elsewhere.
The honest takeaway is that COBRA is a safety net, not a bargain.
It exists so you don't lose coverage overnight, and for people mid-treatment or with complex conditions, it can be worth every penny.
For everyone else, it's often the most expensive door in a hallway full of them.
The people who benefit most from COBRA's reputation are the insurers collecting the premiums and the employers avoiding awkward questions.
Your job is to spend an afternoon comparing real numbers before you sign anything.
Final Thoughts
Do that, and you'll likely save more than any coupon app ever managed.