The letter arrives at the worst possible moment.
You just lost your job, and your former employer's HR department is helpfully reminding you that you have 60 days to decide whether to keep your health insurance through COBRA.
Then you see the price: often $600 to $800 a month for a single person, and well over $2,000 for a family.
That's not a typo, and it's not a scare tactic.
COBRA lets you stay on your old workplace plan, but you pay the full premium yourself — the part your employer used to cover, plus a small administrative fee.
The average annual premium for employer-sponsored family coverage now runs above $25,000, according to the Kaiser Family Foundation, and workers typically pick up only about a quarter of that while employed.
A single 40-year-old on a mid-tier plan might owe $650 a month, or $7,800 a year, for coverage that once felt nearly free.
A family of four could face $2,200 monthly — more than many mortgages.
And unlike rent, there's no negotiating, no coupon, and no loyalty discount.
Here's where people get tripped up: the 60-day window feels generous, but coverage isn't retroactive until you pay.
You can technically wait, get hurt in week five, and then elect COBRA to cover the bill.
That's a real safety net, but it only works if you keep the paperwork and act fast.
The better move for most households is to price alternatives before the deadline.
Healthcare.gov opens enrollment after a job loss — that counts as a qualifying life event — and subsidies are often far bigger than people expect.
A family earning $70,000 might qualify for a marketplace plan at a fraction of the COBRA price.
Medicaid is also an option in many states if income drops low enough.
If your income is temporarily high, or you have doctors you refuse to leave, a short-term plan or a health-sharing ministry can bridge the gap.
These plans often exclude pre-existing conditions and cap payouts, which is exactly the kind of detail that bites when you actually need care.
One more thing worth checking: your old employer may offer a severance package that covers part of COBRA for a few months.
It's rarely advertised, but it's sometimes negotiable.
Miss it and you're locked out until the next open enrollment or another qualifying event.
Set a calendar reminder for day 45, gather three quotes, and compare them side by side.
Thirty minutes of homework can save you thousands.
The bottom line: COBRA is a safety net, not a bargain.
Treat it as a last resort, not a default.
Final Thoughts
Your old plan was affordable because someone else was paying for it — and that someone is now you.