Then the health insurance bill shows up, and it stings again.
If you've ever wondered why people call COBRA a budget killer, the numbers explain it fast.
COBRA lets you keep your employer's health plan for up to 18 months after you leave a job.
The catch: you now pay the full premium yourself.
That includes the part your boss used to cover.
So if you paid $150 a month at work, you could suddenly owe $600 to $700 — or more — for the exact same coverage.
The Kaiser Family Foundation puts average annual premiums at roughly $8,900 for single coverage and about $25,600 for family coverage in employer plans.
Divide those by 12, and you're looking at around $740 a month for one person and north of $2,100 a month for a family.
Employers typically cover most of that while you're working.
Companies with 20 or more employees must follow federal COBRA rules.
Smaller employers follow state mini-COBRA laws, and the details vary.
Some states offer longer windows or different rules.
Your HR department or state insurance office can tell you which one applies to you.
The American Rescue Plan Act made COBRA fully subsidized for six months during 2021, and that relief expired.
No current federal program covers the whole tab.
A few states run their own premium assistance programs, but eligibility is tight and enrollment windows are short.
It's worth a quick search for your state's rules before you assume you're on your own.
First, compare COBRA against a marketplace plan at Healthcare.gov.
During a special enrollment period after job loss, you can often find a silver plan with subsidies that cost far less than COBRA — especially if your income drops this year.
Second, check whether a spouse's plan will take you.
Third, look at short-term or association plans, but read the fine print; they can exclude pre-existing conditions and cap payouts.
You usually have 60 days from your coverage-ending notice to elect COBRA.
Miss it and you're locked out — even if you later decide you want it.
And if you skip COBRA but let coverage lapse for 63 days or more, you may not qualify for a marketplace special enrollment period either.
If you're healthy and between jobs briefly, a marketplace bronze plan can be the cheaper bridge.
If you're mid-treatment or have a deductible you've nearly met, COBRA's continuity of care can be worth the premium.
Run the math for your own prescriptions, doctors, and deductible before you decide.
The real issue is that losing a job shouldn't mean gambling with your health coverage.
COBRA was designed as a safety net, not a permanent solution, and the price tag makes that clear.
Final Thoughts
Until premiums come down, the best move is to compare every option fast — and never let a deadline slip past.