Then the COBRA letter arrives, and the number on it can feel like a second punch.
COBRA lets you keep your employer's health plan after leaving a job, but you now pay the full freight — the part your boss used to cover plus your own share.
That's why the average family premium under COBRA runs north of $2,000 a month, while single coverage often lands between $600 and $800.
The math is brutal because employers historically picked up roughly 70% to 80% of the premium.
Once you're on COBRA, that subsidy vanishes.
You're paying the whole bill to keep the same doctors, the same deductible, and the same network — which is exactly why people cling to it.
There's a time limit that trips people up.
You generally have 60 days from the date your coverage ends to elect COBRA, and if you miss that window, you're locked out.
You also have to pay retroactively back to your termination date, so the first bill can lump two or three months together.
If you're laid off, check whether your former employer offers a severance package that covers part of the premium.
Compare COBRA against a marketplace plan at HealthCare.gov — if your income drops after a job loss, you may qualify for subsidies that make a plan far cheaper.
And don't overlook a spouse's plan if you have that option during their open enrollment or a qualifying life event.
Dental and vision are usually separate add-ons, and they carry their own price tags.
Skipping them is a real choice, not a mistake — a standalone dental plan often costs less than the COBRA version.
One more trap: COBRA isn't always the best coverage even when you can afford it.
If your old plan had a narrow network or a sky-high deductible, a marketplace plan at a similar price might serve you better.
Run the total yearly cost, not just the monthly premium.
If the number is simply impossible, short-term health plans and health-sharing ministries exist, but they come with real gaps — pre-existing condition exclusions, capped benefits, and no guaranteed coverage.
Read the fine print before you sign anything.
The closing take: COBRA is a bridge, not a destination.
Use it to stay insured while you sort out cheaper options, and don't let the first scary invoice push you into going uninsured.
Final Thoughts
A few hours comparing plans can save you thousands over a year.