Then the paperwork arrives, and the number on the page can feel like a second punch.
That number is your COBRA premium — the price to keep your old workplace health plan for a while after you leave.
Here is the part that surprises people: your employer was quietly paying most of the bill.
Once you're gone, that share often lands on you.
A plan that felt affordable at $180 a paycheck can suddenly cost $650 to $750 a month for single coverage, and well over $2,000 for a family.
COBRA is a federal law, not a company perk.
It generally applies to employers with 20 or more workers and lets you stay on the same plan for up to 18 months, sometimes longer.
You keep the same doctors, the same deductible progress, and the same network.
You also keep the same full price, plus a small administrative fee of up to 2%.
You usually have 60 days from the date of your coverage notice to enroll, and the clock starts even if you're still deciding.
If you enroll late, you may owe back premiums for the months you skipped.
First, find your notice and write the deadline on your calendar.
Second, compare three numbers side by side: the COBRA premium, a marketplace plan from HealthCare.gov, and a plan through a spouse's job if that's an option.
Do not assume COBRA is the expensive choice.
If you have a chronic condition, are mid-treatment, or already blew through your deductible this year, staying put can be cheaper than starting over.
A marketplace plan may have a lower sticker price but a fresh deductible and a new network.
One more thing worth checking: whether you qualify for a special enrollment period.
Losing job-based coverage typically counts as a qualifying life event, which lets you shop outside the normal open enrollment window.
Losing coverage also can open the door to subsidies on HealthCare.gov, and those subsidies are based on your estimated income for the year — which may be much lower now.
If you're between 18 and 36 months out and your former employer had 20+ workers, you may also have a second option: a marketplace plan with a subsidy that beats COBRA outright.
Ask HR whether your old plan offers a cheaper tier you can switch into.
Check whether a dental or vision add-on is worth keeping separately.
And if your income dropped hard, look at Medicaid in your state — in the 40 states that expanded coverage, many newly unemployed adults qualify.
If you sign up for COBRA and then find a cheaper plan a month later, you can usually drop COBRA, but you may not get those premiums back.
Some people use COBRA as a short bridge while they shop, which is fine — just know the exit rules.
The bottom line is that COBRA is a safety net, not a bargain.
Treat the premium like any other bill: know the number, know the deadline, and compare it against at least two alternatives before you sign.
My take: the system makes you do homework at the worst possible moment, and that's by design.
Final Thoughts
Spend one evening with a calculator and a deadline on your fridge, because guessing here can cost you hundreds a month.