You just lost your job, and the severance packet mentions COBRA like it's a lifeline — then you see the price.
For a family plan, you're often looking at $1,400 to $2,400 a month, sometimes more, depending on your state and the plan your old employer offered.
Here's why it's so brutal: when you were employed, your company typically covered 70% to 85% of the premium.
COBRA lets you keep the same coverage, but you pay the full amount yourself — your share plus what your employer used to kick in, plus a small administrative fee of up to 2%.
A single person on a mid-tier plan might pay $500 to $700 a month.
A couple in their 50s could see $1,200 or more.
And that's before deductibles, copays, and out-of-pocket maximums, which don't change just because you're now paying retail.
The math gets ugly against unemployment checks.
Average weekly benefits run around $400 nationally, and many states cap them well below that.
A single month of family COBRA can swallow two or three weeks of benefits in one bite.
Many skip COBRA entirely and head to Healthcare.gov.
Losing job-based coverage counts as a qualifying life event, so you get a special enrollment window — usually 60 days from the date coverage ends.
Subsidies through the ACA marketplace are often far more generous than people expect, especially if your income drops for the year.
For a family of four earning around $60,000, marketplace subsidies can cut premiums dramatically — sometimes to a few hundred dollars a month for a solid silver plan.
If your income falls near the poverty line, you may qualify for Medicaid in your state, which can mean near-zero premiums.
Short-term health plans can cost $100 to $300 a month, but they often exclude pre-existing conditions, skip maternity care, and cap what they'll pay.
One more option worth knowing: some employers offer a severance add-on that covers COBRA for a few months.
Read the fine print before you assume you're on your own.
If you're staring down a COBRA bill right now, the smart move is to price out the marketplace before you write that first check.
The difference can be hundreds of dollars a month — money that matters a lot more when there's no paycheck coming in.
Our take: COBRA is a useful fallback, not a default.
Treat it like one option on a menu, not the only door left open, and check the marketplace numbers the same week your job ends.
Final Thoughts
A few hours of comparison shopping can save you thousands over a year.