For millions of American workers, the price of keeping their employer's health plan after a layoff has climbed into jaw-dropping territory.
COBRA — the law that lets you stay on your old work plan for up to 18 months — requires you to pay the full premium yourself, plus a small administrative fee.
Your employer used to cover most of the bill.
A family plan that cost you $500 a month through payroll deductions can suddenly run $1,800 or more.
Individual coverage that felt manageable at $150 can jump past $700.
In high-cost states like California, New York, and Massachusetts, family COBRA premiums can top $2,000 a month.
A $22,000 annual premium is more than many people earn in four months.
And you're expected to pay it while your income has stopped.
Here's why it stings even more right now.
Health care costs are rising across the board — hospital services, prescription drugs, and insurance premiums have all climbed.
Insurers are passing those increases to employers, and employers are passing them to you.
COBRA also doesn't offer subsidies, unlike the ACA marketplace.
If you lose your job, you can often find a marketplace plan with tax credits that cost hundreds less per month.
A family of four earning $70,000 could qualify for significant help.
You typically have 60 days from losing coverage to elect COBRA or enroll in a marketplace plan.
Miss the window, and you may be locked out until the next open enrollment period.
The good news: you don't have to decide immediately.
You can retroactively elect COBRA within 60 days, meaning you can wait to see if you need it.
If you don't use care in that window, you can skip it and keep the marketplace option.
For people with ongoing conditions, expensive medications, or doctors they can't leave, COBRA may still be worth it.
For everyone else, comparison shopping is essential.
Check healthcare.gov or your state exchange first.
Call your doctors to confirm they accept marketplace plans.
And ask your HR department for the exact COBRA premium before you assume it's your only choice. **The bottom line:** COBRA was designed to protect workers, but its price tag increasingly feels like a punishment.
Final Thoughts
If you've lost a job, run the numbers before you sign anything — the cheaper option is often hiding in plain sight.