COBRA lets you keep your employer's health plan for up to 18 months after leaving a job, but you pay the full premium yourself — the part your employer used to cover, plus your share.
According to KFF's annual employer survey, the average family plan now runs north of $25,000 a year, with employers covering roughly $19,000 of that.
Lose the job, and that subsidy vanishes overnight.
Say your employer was paying $1,500 a month toward your family coverage while $500 came out of your paycheck.
On COBRA, you owe the entire $2,000 — a 300% increase — plus a small administrative fee that plans typically tack on.
That single line item can rival a mortgage payment.
And it arrives at the exact moment your income has stopped.
There's a reason enrollment is so much lower than you'd expect.
KFF research has found that while roughly 40% of eligible workers sign up right after losing a job, only about 14% are still covered a year later.
Most people simply can't sustain the payments and drop off.
If you're facing this, run the numbers before you write a check.
Compare COBRA against a marketplace plan at Healthcare.gov — and check whether your household income qualifies for subsidies now that a job loss has changed it.
A lower income year can unlock premium tax credits that make a marketplace plan dramatically cheaper than COBRA.
You generally have 60 days from your coverage end date to elect COBRA, and you can sometimes elect retroactively if you get sick during that window.
Marketplace enrollment, meanwhile, comes with its own special enrollment period of 60 days after losing job-based coverage.
One more thing worth knowing: losing a job is a qualifying life event, so you don't have to wait for open enrollment.
Scammers know this is a stressful moment.
Watch for calls or texts offering to "fix" your coverage for an upfront fee, or sites that look like Healthcare.gov but charge for enrollment.
Go directly to the government site or your state's exchange.
Employers aren't required to keep paying their share, though some offer a temporary severance subsidy.
Ask HR exactly how long any bridge coverage lasts — and get it in writing.
The takeaway: COBRA is a safety net, not a bargain.
Treat it as one option among several, price it against the marketplace the same week you lose coverage, and let the numbers pick the winner.
Final Thoughts
Your old plan may be worth keeping — just don't assume it's your only or cheapest door.