Then the paperwork arrives, and the price tag hits.
If you've ever left a job and looked into keeping your employer's health plan through COBRA, you know the number can feel less like a bridge and more like a wall.
Here's why that bill is so high right now, and what your real options are. **Why COBRA costs so much** When you're employed, your company typically covers a big chunk of your premium.
The average employer plan costs roughly $8,900 a year for single coverage and about $25,600 for a family, according to recent KFF survey data.
Workers usually pay only a slice of that.
Under COBRA, you pay the whole thing — your share plus what your employer used to contribute — and you're allowed to be charged an extra 2% for administrative costs.
A plan that felt like $180 a month from your paycheck can turn into $700 or more out of pocket.
Family coverage can run well over $2,000 a month in many states. **The window you can't miss** COBRA isn't automatic.
You generally have 60 days from when your coverage ends (or from when you get the election notice) to decide.
Here's the part people get wrong: you can often elect COBRA retroactively.
If you skip it, get sick three weeks later, and sign up before the deadline, coverage can reach back to day one.
Some people use that as a safety net while shopping for something cheaper. **Cheaper places to look first** Before you sign that COBRA form, check these: - **Healthcare.gov or your state marketplace.** Losing job-based coverage counts as a qualifying life event, so you can enroll outside open season.
If your income drops, you may qualify for subsidies that cut premiums dramatically. - **A spouse's or partner's plan.** Getting added during their open enrollment — or a special enrollment window — is usually the cheapest route. - **Medicaid.** In most states, expanded eligibility covers adults up to 138% of the federal poverty line.
For a single person, that's roughly $20,000 a year. - **Short-term plans.** Cheaper, but they can exclude pre-existing conditions and skip essentials like maternity or mental health care.
Read the fine print carefully. **Run the math before you decide** Add up your deductible, copays, and prescriptions under COBRA versus a marketplace plan.
If you're healthy and your income is low, a subsidized marketplace plan often wins by hundreds of dollars a month.
If you're mid-treatment with doctors you trust, COBRA may be worth the premium for continuity — at least until you finish the year. **The takeaway** COBRA is a legal right, not a bargain.
Treat the 60-day window as a deadline to compare, not a countdown to sign.
A few hours of shopping could save you thousands. *Opinion: The system makes laid-off workers do homework at the worst possible moment.
Final Thoughts
Compare fast, ask for help, and don't let sticker shock push you into the first expensive option you see.*