Then the envelope arrives with your COBRA paperwork, and the number on it can feel like a second layoff.
COBRA lets you keep your employer's health plan for up to 18 months after you leave a job.
The catch: your boss used to pay most of the premium.
The average family premium for employer-sponsored coverage ran about $25,600 a year in 2024, according to KFF's annual survey.
Workers typically paid around $6,600 of that.
On COBRA, you're staring down the full amount — roughly $2,100 a month for a family, before any 2% administrative fee.
For singles, the math is less crushing but still ugly.
Average individual coverage topped $8,900 a year, with workers kicking in about $1,300.
On COBRA, that same plan can jump past $700 a month.
That's a mortgage payment for a policy you may barely use.
Here's why the sticker shock hits harder right now.
Rent, groceries, and credit card balances have all climbed, and unemployment benefits replace only a slice of a lost paycheck — often less than half in many states.
A $2,000 monthly premium isn't competing with a gym membership.
It's competing with keeping the lights on.
Historically, only a small share of eligible workers — often cited around one in five — actually sign up for COBRA.
Go without insurance and one emergency room visit or a surprise hospitalization can land you in five-figure debt.
Medical bills are a leading driver of collections accounts on credit reports, and unpaid balances can drag down your score for years.
First, don't panic-sign the COBRA form the day it arrives.
You usually have 60 days from losing coverage to elect it, and coverage can be retroactive to your last day on the plan.
Second, price the ACA marketplace at HealthCare.gov.
If your income drops after a job loss, you may qualify for subsidies that make a bronze or silver plan far cheaper than COBRA.
A special enrollment period of 60 days applies after losing job-based coverage.
Third, check whether you qualify for Medicaid.
In states that expanded coverage, a single adult with little or no income often qualifies immediately.
The coverage is comprehensive, and the premium is zero.
Fourth, compare against a spouse's plan if that's an option.
Open enrollment rules can be waived after a qualifying life event like a job loss.
Fifth, if you have a chronic condition and your doctors are only in-network on your old plan, COBRA may still be worth it.
Run the real numbers for your prescriptions and specialists before deciding.
One more thing: if your former employer had 20 or more employees, COBRA is federal law.
Smaller employers fall under state mini-COBRA rules, which vary widely and often last fewer months.
The bottom line: COBRA is a safety net, not a bargain.
Treat that premium notice as a starting point for comparison shopping, not a bill you have to accept.
Give yourself a week with a calculator and the marketplace website before you commit.
Final Thoughts
Overpaying for the same health plan out of loyalty or fear is a choice — and usually a fixable one.