Then the paperwork arrives, and the number on it can feel like a second punch.
It lets you keep your old workplace health plan for a while after you leave a job, but here's the catch: you usually pay the full premium yourself.
The average annual premium for family coverage in an employer plan ran around $25,000 in recent survey data, with workers typically covering only a fraction.
You can be staring at roughly $2,000 or more a month for a family, or several hundred for single coverage.
Because health costs keep climbing even as grocery bills, rent, and credit card interest squeeze the same budget.
Insurers price in rising hospital, drug, and labor costs.
Those increases land on the premium, and on COBRA, they land on you.
Enhanced federal subsidies that helped people afford marketplace plans are set to lapse at year's end, which means many households shopping for coverage could see steeper prices too.
So what should you actually do before you write that check?
A marketplace plan at HealthCare.gov may cost far less than COBRA, especially if your income drops after a layoff.
Losing job-based coverage opens a special enrollment window, usually 60 days.
Run the numbers before you assume COBRA is your only option.
Second, check your spouse's or partner's plan.
If they have employer coverage, adding you during their special enrollment period is often cheaper than COBRA.
If you rarely see doctors, a lower-premium marketplace plan with a higher deductible may beat a rich COBRA plan you're paying full freight for.
If you have ongoing prescriptions or a chronic condition, check that your doctors and drugs stay in-network.
COBRA election windows are typically 60 days, and you generally have 45 days to pay once you elect.
One more thing people miss: you can often drop COBRA later and switch to a marketplace plan, but only during open enrollment or after another qualifying life event.
That flexibility matters if your budget changes.
The hard truth is that COBRA was designed as a bridge, not a long-term home.
Use it for a month or two if you need continuity, but price out every alternative before you commit to a payment that could rival a mortgage.
Our take: COBRA is valuable protection, but it's rarely the cheapest path.
Do the math in the first week after a job loss, not the last.
Final Thoughts
A few hours of comparison shopping can save thousands over a year.