Then the paperwork arrives, and the number on the COBRA enrollment form stops people cold.
COBRA lets you keep your employer's health plan after leaving a job, but you now pay the full premium yourself — the part your company used to cover plus your old payroll deduction.
That shift is why the average family plan under COBRA runs roughly $1,900 to $2,100 a month in 2025, depending on the plan and region.
Individual coverage commonly lands between $650 and $750 monthly.
The wild part: most workers never see that full number while employed.
Employers typically cover 70 to 80 percent of premiums, so a $500 paycheck deduction can morph into a $2,000 bill overnight.
And there's a 2 percent administrative fee baked in on top.
You generally have 60 days from losing coverage to elect COBRA, and payments can be retroactive, which trips people up.
Miss a payment window and the coverage can vanish — even if you already went to the doctor.
The big COBRA premium subsidy from the 2009 stimulus era is long gone, and no broad federal replacement exists today.
A few states offer their own mini-subsidies, but eligibility varies wildly.
Compare COBRA against a marketplace plan at Healthcare.gov before you commit.
If your income drops after a layoff, you may qualify for premium tax credits that slash monthly costs dramatically — sometimes to under $100 for a single adult.
Losing job-based coverage counts as a qualifying life event, so you can enroll outside open enrollment.
Short-term health plans and health-sharing ministries look cheap, but they often exclude pre-existing conditions and cap payouts.
Read the fine print before trading real coverage for a low sticker price.
One underused trick: if you're close to hitting your deductible or in the middle of treatment, COBRA can be worth the steep premium to keep your same doctors and network.
If you're healthy and rarely use care, a marketplace plan usually wins on cost.
Also check whether you qualify for Medicaid.
In the 40-plus states that expanded eligibility, a single adult earning under about $1,700 a month may get coverage for free or nearly free.
My take: don't panic-sign the COBRA form the day it lands.
Spend one afternoon running the marketplace numbers side by side, because that single comparison can save a household thousands over a year.
Final Thoughts
The sticker shock is real, but so are the cheaper alternatives most people never bother to check.