Then the letter arrives from your former employer's benefits administrator, and the number on it can feel like a second layoff.
That number is COBRA — the federal law that lets you keep your old workplace health plan for up to 18 months after leaving a job.
The catch: you now pay the full premium yourself, both the part your employer used to cover and your own paycheck deduction.
For a family plan, that's often $1,800 to $2,400 a month in 2025, according to benefit consultants who track employer plans.
Your old employer's plan might be the most expensive option on your kitchen table, not the best one.
The Affordable Care Act marketplace often offers the same household coverage for hundreds less per month, especially once subsidies are applied.
KFF estimates roughly 60% of uninsured Americans qualify for marketplace plans that cost $10 or less per month after tax credits — a gap between perception and reality that costs families real money every month.
Marketplace enrollment after a job loss counts as a special enrollment window, typically 60 days from the coverage loss date.
Miss it and you may be locked out until open enrollment in November.
COBRA's own window is also 60 days, and you can technically sign up retroactively if something catastrophic happens — a detail worth knowing before you panic-enroll.
Then there's the quiet killer: dental and vision.
COBRA usually lets you keep those too, but the standalone premiums can run $50 to $90 a month for a family.
Many households are better off buying a separate dental plan or paying cash for cleanings.
COBRA is administered by big benefits companies that collect fees on every enrolled member, and employers sometimes subsidize COBRA for a few months as part of a severance deal.
If you're offered that subsidy, ask exactly how long it lasts and what happens on the last day.
A "three months free" offer can turn into a $2,000 monthly bill without warning.
One more overlooked option: if you're married, compare adding yourself to your spouse's plan during their open enrollment versus COBRA.
And if your income drops sharply, a marketplace plan with subsidies is frequently the cheapest route — but you have to actually run the numbers, not guess.
Check your state's marketplace site, your spouse's plan, and COBRA side by side before you sign anything.
The default choice is rarely the affordable one.
The uncomfortable truth is that a system designed to protect people between jobs has become a billing machine for the companies that administer it.
COBRA works best as a short-term bridge, not a long-term plan, and treating it that way can save a household thousands.
Final Thoughts
Read the fine print before you mail that first check.