Then the COBRA letter arrives, and the number on it can feel like a second layoff.
COBRA lets you keep your former employer's health plan for up to 18 months in most cases.
The catch is that your company usually stops paying its share of the premium.
You inherit the whole bill — and often a 2% administrative fee on top.
That's why the sticker shock hits so hard.
Your paycheck deduction might have been $200, with your employer covering $500.
Multiply by a family, and many households are looking at $1,800 to $2,200 a month, according to benefit advisers.
The math gets worse when you factor in what you still owe at the doctor.
COBRA keeps your same deductible, copays, and network, which is genuinely valuable if you're mid-treatment or love your doctors.
You're just paying full freight for the same plan.
For most people, the real decision comes down to three options: COBRA, an ACA marketplace plan, or a spouse's plan if that door is open.
Marketplace coverage is usually the first place to check.
If your income drops after a job loss, you may qualify for subsidies that cut premiums dramatically — sometimes to under $100 a month for a single person.
Losing job-based coverage also triggers a special enrollment window, so you don't have to wait for open enrollment.
The trade-off is networks and deductibles.
A marketplace plan may cost less per month but come with a higher deductible or a narrower list of doctors.
If you're in the middle of a pregnancy, surgery, or a specialist you trust, COBRA can be worth the premium for a few months while you sort things out.
Short-term plans look tempting online, often $100 to $300 a month.
They can exclude pre-existing conditions, cap payouts, and skip essentials like maternity or mental health care.
A few practical moves can save real money.
Ask HR for the full COBRA rate in writing before your last day, so you're not guessing.
Compare that number against two or three marketplace quotes at healthcare.gov.
Check whether you qualify for Medicaid — in many states, a single adult with little income can get coverage free.
And if you're healthy with savings set aside, a high-deductible marketplace plan plus a stocked HSA often beats COBRA on total annual cost.
One more thing: you usually have 60 days to elect COBRA, and if you enroll, you can be covered retroactively.
That gives you a short window to compare plans without losing coverage.
If you're 65 or older, Medicare usually takes over and COBRA becomes secondary.
If you're on a spouse's plan, compare that option too — adding a family member during a qualifying life event is typically allowed.
The bottom line: COBRA is a bridge, not a destination.
It's often the most expensive way to stay insured, but it's also the fastest way to keep the exact coverage you already have.
Our take: treat the COBRA letter as a starting bid, not a final answer.
Final Thoughts
Spend one afternoon running the numbers on the marketplace before you mail a check — the difference can easily be several hundred dollars a month, and that money belongs in your pocket.