Layoffs keep rolling through tech, media, and retail, and the first question at many kitchen tables is the same: how do we keep our health insurance?
The federal COBRA law lets you stay on your former employer's plan for up to 18 months, but the price tag catches most people off guard.
Employers typically cover 70% to 80% of a worker's premium.
When you go on COBRA, you pay the full amount yourself, plus a 2% administrative fee.
So that $150 payroll deduction can balloon into $650 to $750 a month for an individual.
Family coverage is where it really stings.
According to KFF's latest employer survey, the average total premium for family coverage runs about $25,000 a year — roughly $2,100 a month.
Laid-off workers on COBRA can be asked to cover nearly all of it.
That's a mortgage payment for many households.
And it doesn't include copays, deductibles, or prescriptions, which keep coming out of your pocket on top of the premium.
A temporary subsidy exists, but it's narrow.
The American Rescue Plan's 100% COBRA subsidy expired in 2022.
Some states run their own mini-subsidy programs, and a few union or severance agreements include premium support — so read your severance paperwork carefully before assuming you're on your own.
The good news: COBRA is often not the cheapest option.
If you're between jobs, an ACA marketplace plan usually costs less, especially after subsidies.
A family of four earning $70,000 might qualify for significant tax credits that COBRA can't match, because COBRA premiums don't count toward subsidy eligibility.
You have 60 days from your coverage end date to elect COBRA — and you can retroactively enroll if something happens during that window.
That gives you breathing room to compare plans on HealthCare.gov or your state exchange before committing.
If you're 65 or older, Medicare usually becomes primary and COBRA turns into secondary coverage, which changes the calculus again.
Short-term health plans look cheap — sometimes $100 to $200 a month — but they often exclude pre-existing conditions, maternity care, and mental health coverage.
One hospital stay can wipe out the savings.
In the 40 states that expanded coverage under the ACA, a single adult earning up to about $20,000 a year often qualifies.
That's $0 in premiums for many enrollees.
If you're married and your spouse has employer coverage, their open enrollment window is the simplest fix.
A job loss counts as a qualifying life event, so you can join mid-year.
The practical playbook: check marketplace prices first, price out COBRA second, and treat short-term plans as a last resort.
Do the comparison within the first two weeks of losing coverage so nothing lapses.
Opinion: COBRA was designed to protect people, but the price has drifted so far from what most families can absorb that it's become a fallback rather than a real safety net.
Final Thoughts
Compare every option before writing that first check — the marketplace often wins, and the 60-day window is your best friend.