Then the COBRA paperwork shows up, and the number on it can feel like a second punch.
For a laid-off worker, continuing an employer health plan under COBRA often costs the full premium plus a small admin fee — the portion the company used to cover.
Nationally, that averages roughly $700 to $750 a month for single coverage and over $2,000 for a family, according to annual employer surveys.
In high-cost states, families report quotes north of $2,500.
And it lands at the exact moment the paycheck stops.
The cruel math is that COBRA is usually the most expensive option on the table, yet it is the one people default to because it is the one they have heard of.
Enrollment is often automatic-feeling: the letter arrives, the deadline looms, and fear does the deciding.
COBRA comes with a 60-day window to elect coverage, and if you enroll, you can be retroactively covered back to the day your job ended.
That means you do not have to decide on day one.
You can shop the marketplace, price out alternatives, and still keep COBRA as a safety net if something goes wrong during those two months.
A job loss counts as a qualifying life event, so you can enroll outside open season.
Here is the detail most people miss — losing employer coverage usually lets you qualify for premium tax credits, even if your income previously disqualified you.
For a family of four earning around $60,000, subsidies can cut marketplace premiums dramatically below the COBRA quote.
In some states, expanded Medicaid may cover you for free.
If your partner has employer coverage, a job loss opens a special enrollment window, typically 30 to 60 days.
Adding a spouse or family to an existing plan is frequently hundreds of dollars cheaper than a standalone COBRA policy.
Escape route three: short-term or health-sharing plans.
These are cheaper on paper but come with real trade-offs — pre-existing condition exclusions, coverage caps, and limited networks.
They work for some healthy people bridging a short gap.
They are a bad fit for anyone managing an ongoing condition.
You generally have 60 days from the coverage-loss notice to elect COBRA, and a separate window — often 30 to 60 days — to grab marketplace or spousal coverage.
Miss the marketplace window and you may be locked out until the next open enrollment.
Before you write a check, do three things.
Call your state's marketplace or use HealthCare.gov to get a real subsidy estimate.
Ask your partner's HR department for an exact cost to add you.
And check whether you qualify for Medicaid, which has no premium at all.
If you already elected COBRA and found something cheaper, you are not stuck forever.
You can drop COBRA at any time — though you cannot re-enroll later if you change your mind.
Open enrollment is also your annual chance to switch.
The bottom line: COBRA is a legal right, not a requirement, and it is rarely the cheapest door.
The 60-day election window is a gift most people never use.
Final Thoughts
Price your options before you sign, because the difference between the letter's number and your real options can run into thousands of dollars a year.