When a layoff lands, the panic usually centers on the next paycheck.
But there's a second bill hiding in the paperwork: health coverage.
Miss one deadline and you could be locked out of your plan until next year — or stuck paying full price.
It lets you keep your old employer's health insurance after you leave a job, get fired, or lose hours.
Your company used to cover most of the premium.
Once you're on COBRA, you typically pay the whole thing yourself, plus a small administrative fee.
According to 2024 data from KFF, average annual premiums ran about $8,951 for single coverage and $25,572 for family plans.
Employers historically picked up roughly 70% to 80% of that.
On COBRA, you're on the hook for nearly all of it.
A family could be staring down $2,000 or more per month for the same coverage they had last week.
There's a 60-day window to decide, starting from when your coverage would end or when you get the election notice — whichever is later.
Do nothing and you're assumed to have declined.
You can also enroll later in some cases, but only during a special open enrollment period, and only if you haven't gone more than 63 days without coverage.
The smarter move for many people is the Health Insurance Marketplace.
Losing job-based coverage counts as a qualifying life event, so you can sign up outside the normal window.
And here's the part that surprises people: enhanced subsidies from the Inflation Reduction Act have made marketplace plans far cheaper for middle-income households than they were a few years ago.
Some families qualify for plans that cost a fraction of COBRA.
Run the math before you default to your old plan.
Compare the deductible, the out-of-pocket maximum, and whether your doctors are in-network.
A lower premium with a brutal deductible can cost more if you actually use care.
Short-term health plans look tempting because they're cheap, but they often skip prescription drugs, maternity care, and pre-existing conditions.
One more thing: if you're married and your spouse has coverage through work, getting added there is usually the cheapest route of all.
That window is often just 30 to 60 days after your own coverage ends.
The bottom line: COBRA is a safety net, not a bargain.
Treat that 60-day clock like a bill you can't afford to miss, and price out the marketplace before you sign anything. *Opinion: For most healthy workers, COBRA is the expensive default and the marketplace is the smarter bet — but only if you actually run the numbers instead of freezing up.
Final Thoughts
The people who get hurt are the ones who let the deadline pass in silence.*