Then the paperwork arrives, and the real number shows up: what it actually costs to keep your old health plan under COBRA.
For a single person on a typical employer plan, premiums can run roughly $600 to $800 a month.
Add a spouse and kids, and you're often staring at $1,800 to $2,200 — sometimes more.
That's the full premium your employer used to quietly cover, now landing on your kitchen table.
Here's the part that surprises people: COBRA doesn't give you a discount.
It just lets you keep the same plan by paying the entire bill yourself.
Your employer's share, your share, plus a small administrative fee — usually 2 percent — all become your responsibility.
If your old plan cost $1,900 a month, that's $22,800 a year in premiums alone, before you've paid a single copay.
For someone collecting unemployment, that can swallow a household budget whole.
If you buy a plan on HealthCare.gov instead, you may qualify for premium tax credits based on your new, lower income.
A layoff often drops your income enough to unlock subsidies that make marketplace coverage far cheaper than COBRA.
That's why financial advisers routinely tell people to price both options before signing anything.
You generally have 60 days from the date your coverage ends to elect COBRA.
The flip side: you can often wait, compare plans, and decide later — as long as you act within the deadline.
Dental and vision usually aren't included in the core COBRA election.
They're separate add-ons, and they carry their own price tags.
Skipping them is a legitimate way to trim the bill if you don't need them.
One more trap: some people assume COBRA is their only path because they've heard marketplace plans are worse.
Same doctors, similar networks, and a subsidy that cuts the cost by hundreds of dollars a month.
The catch is you have to actually apply and estimate your income honestly.
Insurers and administrators collect the full premium either way.
Employers get the former worker off their books.
The person in the middle — the one who just lost a paycheck — is the one absorbing the shock.
If you're facing this decision, don't panic-sign the COBRA form the day it arrives.
Get your income estimate, check the marketplace, and run the real numbers side by side.
A few hours of comparison can save you thousands over a year.
The uncomfortable truth is that tying health coverage to employment means a layoff becomes a financial double-hit.
Final Thoughts
Until that changes, the smartest move is treating COBRA like any other bill: shop it, question it, and don't assume the first offer is your only one.