Then the COBRA paperwork arrives, and the number at the bottom can feel like a second layoff.
For millions of Americans who leave a job voluntarily or involuntarily, continuing their employer's health plan sounds simple until they see the monthly premium.
That's because COBRA doesn't offer a discount.
It lets you keep your old coverage, but you pay the full tab — the part your employer used to cover plus your own share.
According to KFF, annual premiums averaged roughly $8,951 for single coverage and $25,572 for family coverage in 2024.
Workers typically paid about $1,378 and $6,296 of that respectively.
Lose the job, and the employer's contribution vanishes.
Run the math and the sticker shock lands fast.
A single person whose employer was covering most of the premium could suddenly face $600 to $800 a month, or far more for a family plan.
That's often more than a car payment, and it arrives at the worst possible moment — right when income has stopped and savings start draining.
There's a federal lifeline, but it's partial.
The premium tax credit under the Affordable Care Act can offset costs for people who buy coverage through HealthCare.gov, and many people who lose job-based coverage qualify for a special enrollment period.
The catch: taking COBRA can disqualify you from those subsidies, so the cheaper-looking option isn't always the marketplace.
It depends on income, household size, and where you live.
COBRA rules generally give you 60 days from the date you'd lose coverage to elect it, and you can sometimes elect retroactively if something goes wrong.
That window is a genuine safety net, but it's also a trap for the disorganized — let it close and the option is gone.
The practical move is to compare three numbers side by side: the COBRA premium, a marketplace plan after any subsidy, and a short-term or catastrophic policy if you're healthy and between jobs.
Don't assume your doctor is in the marketplace network, and don't assume COBRA is your only path to keeping them.
Call the insurer, confirm the network, and get the subsidy estimate in writing before you decide.
HR packets often present COBRA as the default, because it's the least work for them.
But the default is frequently the most expensive choice on the table, and a 30-minute comparison can save thousands over a year.
For households already stretched by rent, groceries, and credit card rates near record highs, an extra $700 a month is not a rounding error.
It's the difference between keeping the lights on and falling behind.
The honest takeaway: COBRA is valuable protection, not a bargain.
Treat the premium quote as a starting point for negotiation with your own budget, not a final answer.
Final Thoughts
Shop the marketplace before the 60-day clock runs out, because the cheapest coverage is the one you chose on purpose — not the one you defaulted into.