Then the paperwork arrives, and you find out what your old health plan actually costs when your employer stops paying its share.
Under COBRA, you keep your workplace coverage temporarily, but you now foot the entire premium plus a small administrative fee, usually up to 2 percent.
For a family plan, that often means $1,800 to $2,200 a month.
Individual coverage can run $600 to $900.
The Kaiser Family Foundation puts average annual family premiums well above $23,000, and COBRA asks you to cover nearly all of it yourself.
Here's the part most people miss: the subsidy that once made this affordable is gone.
During the pandemic, the government picked up 100 percent of COBRA premiums for six months.
Insurers and third-party administrators, who collect the full premium with zero employer pushback.
For you, it's often the most expensive option on the table.
The alternatives aren't perfect, but they exist.
If you're under 65, Healthcare.gov or your state exchange may offer subsidized plans.
A lost job often counts as a qualifying life event, so you can enroll outside open enrollment.
Enhanced ACA subsidies are set to expire at the end of 2025 unless Congress acts.
If they lapse, exchange premiums could jump sharply for millions of households, narrowing the gap between COBRA and marketplace coverage.
Short-term health plans look cheap, but they can exclude pre-existing conditions and cap payouts.
Many states restrict them for good reason.
In the 40 states that expanded coverage under the ACA, adults earning up to 138 percent of the federal poverty line may qualify.
That's roughly $20,783 for a single person in 2024.
Then there's the quiet option nobody mentions: going uninsured.
One emergency room visit can wipe out savings, and hospitals charge uninsured patients the highest rates.
The 60-day COBRA election window is a double-edged sword.
You can wait and see if you need coverage, since retroactive enrollment is allowed.
But miss the deadline and you're locked out until the next qualifying event.
Spouses and dependents have their own clocks.
A divorce, a death, or a child aging off a plan triggers separate COBRA rights.
If you're healthy and between jobs, a marketplace bronze plan may cost less than half of COBRA.
If you have ongoing treatment and your doctors are in-network, staying on COBRA can be worth the premium.
Call your HR department before your last day.
Then compare it against exchange quotes, Medicaid eligibility, and a spouse's plan.
Ten minutes of math can save thousands. **The Bottom Line** COBRA was designed to protect people between jobs, but it's priced like a luxury product.
The system works best for insurers and administrators, not for the newly unemployed.
Final Thoughts
Treat it as one option among several, not the default, and check every deadline before it closes.