Then the health insurance bill arrives, and the sting turns into a punch.
If you were covered through an employer and got laid off, you have a narrow window to keep that same plan under a federal law called COBRA.
The catch is that you now pay the full freight, not just your share.
Here is the math that catches people off guard.
Employers typically cover most of a worker's premium.
Under COBRA, you pay both portions plus a small administrative fee.
According to 2024 data from KFF, average annual premiums ran about $8,951 for single coverage and $25,572 for family coverage.
Workers had been paying only a slice of that.
The full figure is what lands in your mailbox now.
That works out to roughly $745 a month for an individual and more than $2,100 a month for a family, on average.
In expensive markets or generous plans, it climbs higher.
It is the true cost of the coverage your employer was quietly subsidizing all along.
The deadline is the part that ruins people.
You generally have 60 days from the date coverage ends or the date you get the election notice, whichever is later, to decide.
There is no grace period and no do-over, even if you were busy filing for unemployment.
You can often enroll retroactively, meaning you pay back premiums to the coverage start date.
That can be a lifesaver if something serious happens in month one.
But you need cash ready to cover those back payments, which can run into the thousands.
A cheaper option worth checking first is the federal health marketplace.
Losing job-based coverage counts as a qualifying life event, so you can sign up outside open enrollment.
Many households qualify for subsidies that shrink premiums dramatically.
For some, a marketplace silver plan costs far less than COBRA for similar coverage.
If your income dropped, run the numbers on both before you commit.
A licensed navigator or the healthcare.gov calculator can show the gap in minutes.
Comparing two quotes is free and can save you hundreds a month.
One more trap: COBRA is not always your only path back to the same doctors.
If your spouse has coverage, a special enrollment window usually lets you join their plan.
The bottom line is that COBRA is a bridge, not a destination.
It preserves continuity, keeps your providers, and protects people with ongoing conditions.
But it is priced for people who still have a paycheck.
Treat it as a short-term stopgap while you line up something cheaper.
Our take: the system makes laid-off workers pay retail for a benefit they just lost.
Before you sign that COBRA form, spend twenty minutes comparing marketplace plans.
Final Thoughts
That single step can be worth thousands over a year.