Then the paperwork arrives, and the real number shows up: what it costs to keep your health plan under COBRA.
The Kaiser Family Foundation's latest employer survey puts average annual premiums at roughly $8,400 for single coverage and about $23,900 for family coverage in 2024.
Under COBRA, you typically pay both shares plus a 2% admin fee.
Do the math on a family plan and you're looking at close to $2,000 a month.
It's also more than the average unemployment check in most states, which is why so many people quietly drop coverage within weeks.
It lets workers who lose a job keep their employer plan for up to 18 months, sometimes longer.
The catch is that you're now the employer.
The American Rescue Plan briefly made COBRA nearly free for millions during the pandemic.
That subsidy expired in 2022, and premiums snapped back.
No replacement has passed since, so today's sticker price is the real one.
Miss a payment and you lose coverage retroactively, which can leave you owing for care you thought was covered.
The 60-day election window also runs fast.
First, price your alternatives before the deadline.
Healthcare.gov and state exchanges often show lower premiums after subsidies, though deductibles and networks differ.
Second, check whether a spouse's plan will take you.
Third, ask about short-term or association plans, but read the exclusions.
Also worth knowing: an 18-month COBRA window often lines up with Medicare eligibility for older workers, and some states extend coverage further.
Call your state insurance department before assuming the number you were quoted is final.
Employers aren't required to subsidize COBRA, and most don't.
Some severance packages cover a few months as a bridge, so read that letter carefully.
The bigger story is what this does to household budgets.
A family paying $1,900 a month for health coverage has less room for rent, groceries, or the credit card bill that's already collecting 22% interest.
One job loss can cascade into three financial problems.
And it's the reason so many people gamble on going without insurance until the next paycheck arrives.
If you're staring at a COBRA notice, get the real numbers this week instead of next month.
Compare the exchange, your spouse's plan, and a marketplace broker before the 60-day clock runs out.
Final Thoughts
The choice gets more expensive the longer you wait, and silence is the one option that never pays off.