Then the paperwork arrives, and the sticker shock hits harder.
If you were covered through an employer, you typically have 60 days to decide whether to keep that plan through Cobra, and the price is almost always the surprise.
At work, your employer usually pays a big chunk of the monthly premium.
Under Cobra, you pay the full amount yourself, plus a small administrative fee of up to 2 percent.
So that $180 payroll deduction can turn into $700, $900, or more for the same coverage.
The numbers vary by plan type and family size.
Individual coverage often runs several hundred dollars a month.
Family plans can climb past $1,500 to $2,000 a month in many states.
Dental and vision are separate add-ons, and they aren't cheap either.
Miss that 60-day election window and you lose the option entirely, often with no second chance until the next open enrollment.
Coverage can also end early if you stop paying or your former employer drops the plan.
First, compare Cobra against a marketplace plan at HealthCare.gov.
If your income dropped after a layoff, you may qualify for subsidies that make a marketplace plan far cheaper than full-price Cobra.
Second, check whether you qualify for Medicaid.
In the 40-plus states that expanded coverage, a single adult with low or no income often qualifies, and the monthly premium can be $0.
If you're healthy and mainly want protection against a catastrophe, a high-deductible marketplace plan may cost less per month even with a bigger deductible.
If you have ongoing prescriptions or a chronic condition, staying with your current doctors and network through Cobra may be worth the premium.
Some people qualify for coverage through a spouse's plan, which usually requires a special enrollment window triggered by your job loss.
Others use a short-term plan as a bridge, though those often exclude pre-existing conditions and don't cover everything.
One more thing: don't assume you must decide on day one.
You have the full 60 days, and if you elect Cobra, you can sometimes drop it later if you find something cheaper.
Just read the fine print on retroactive coverage before you rely on it.
The bottom line is that Cobra is a safety net, not a bargain.
It exists so you don't have a gap in coverage, and for some households that continuity is genuinely worth paying for.
Final Thoughts
But for most people who just lost a paycheck, spending an hour on the marketplace site before writing that first big check is the smartest money move available.