Then the COBRA paperwork shows up, and the price tag can feel like a second gut punch.
COBRA lets you keep your employer's health plan for up to 18 months after you leave a job.
The catch: your employer stops paying their share of the premium, and you pick up the entire bill.
That includes both the portion that used to come out of your paycheck and the larger chunk your company quietly covered.
According to KFF's 2024 employer health benefits survey, the average annual premium for family coverage ran about $25,572, with employers covering roughly $19,276 of that.
On COBRA, that whole amount lands on you — meaning many families face premiums north of $1,500 a month for the same plan they had last week.
For single coverage, the average total premium was around $8,951 a year, or roughly $745 a month.
Your actual cost depends on your plan, your location, and how generous your former employer's coverage was.
There's one small break: you may owe slightly less than the sticker price.
Employers can charge COBRA enrollees up to 102% of the full premium — the extra 2% covers administrative costs.
The real danger isn't just the monthly bill.
Miss the 60-day enrollment window, and you're locked out.
You typically get 60 days after coverage would end to elect COBRA, and coverage is retroactive to the day your job-based plan stopped.
That means one hospital visit during the gap could follow you for years if you skip it.
So what do you do if $1,500 a month isn't happening?
First, price out a marketplace plan at Healthcare.gov.
If your income dropped after losing your job, you may qualify for subsidies that never applied to you before.
Many people find a silver plan costs far less than COBRA once those credits kick in.
You have 60 days before or after losing job-based coverage to enroll in a special enrollment period.
Second, check whether you qualify for Medicaid in your state.
The income limits are higher than many people assume, and the coverage is often free or nearly so.
Third, if you have a spouse or partner with job-based coverage, compare adding yourself to their plan during their open enrollment or a qualifying life event.
Fourth, if you're over 65, Medicare likely beats COBRA on cost.
And if you're between jobs only briefly, a short-term plan or a marketplace bronze plan can bridge the gap — just read the fine print, because short-term plans often exclude pre-existing conditions and don't cover everything a real health plan does.
The bottom line: COBRA protects you from a coverage gap, but it's rarely the cheapest option.
Run the numbers on at least two alternatives before that 60-day clock runs out.
Our take: COBRA's real value is continuity — same doctors, same network, no lapse.
But for most households, it's a stopgap, not a strategy.
Final Thoughts
Spend an afternoon comparing marketplace prices before you sign anything.