Then the COBRA paperwork shows up, and the monthly price can feel like a second mortgage.
COBRA lets you keep your old employer's health plan for up to 18 months in most cases.
The catch: you now pay the full premium yourself, plus a small administrative fee.
The average job-based family plan runs roughly $2,000 to $2,400 a month in total premiums, according to recent employer surveys.
As a former employee on COBRA, you could owe most or all of that out of pocket.
For single coverage, the numbers are smaller but still painful.
Expect somewhere between $550 and $800 a month depending on your state, plan richness, and industry.
The sticker shock is real, and it hits at the worst possible time.
But here's what many people miss: COBRA is often the most expensive option on the table, not the only one.
The first move is to check Healthcare.gov or your state's marketplace.
A special enrollment window opens when you lose job-based coverage, and you generally have 60 days to act.
Subsidies under the Affordable Care Act can slash premiums dramatically for middle- and lower-income households.
Some laid-off workers qualify for a $0 or near-$0 marketplace plan after tax credits.
That's a fraction of what COBRA would cost for similar coverage.
If you're under 26, you may be able to join a parent's plan.
If you're married, a spouse's employer coverage is usually the cheapest route.
And if your income dropped sharply, Medicaid might be an option in states that expanded it.
COBRA still makes sense in a few situations.
If you've already hit your deductible this year, switching plans resets that clock.
If you have ongoing treatment and want to keep the exact same doctors and network, staying put can be worth the premium.
You have 60 days from your coverage end date to elect COBRA, and you can retroactively enroll if something happens.
Watch for one more trap: COBRA doesn't last forever.
Once the 18 months runs out, you'll need a new plan anyway, and you may face a gap if you haven't planned ahead.
Before writing that first check, spend 30 minutes comparing marketplace quotes, spouse coverage, and Medicaid eligibility.
The difference can easily be several hundred dollars a month, or thousands over a year. **Our take:** COBRA is a safety net, not a bargain.
Treat it as your fallback, not your default, and run the math before you commit to 18 months of premium pain.
Final Thoughts
A few minutes of comparison shopping can keep real money in your pocket when you need it most.