Then the paperwork arrives, and the number on the COBRA enrollment form can feel like a second punch.
For millions of Americans between jobs, continuing their employer's health plan sounds simple until they see the monthly price.
COBRA lets you keep your workplace coverage for up to 18 months in most cases.
The catch is that your employer stops chipping in.
You now pay the full premium plus a 2% administrative fee, which is why the sticker shock is so brutal.
KFF's annual employer survey puts average annual premiums at roughly $8,950 for single coverage and $25,572 for family coverage in recent years.
Divide those by 12, add the 2% fee, and a family could be looking at more than $2,100 a month.
That's often more than a mortgage payment.
For a single worker, it can still land near $760 a month, and that's before any copays, deductibles, or out-of-pocket costs when you actually use the plan.
COBRA doesn't lower your costs just because you lost income.
You're paying the same total the insurer always charged, only now the employer's share is gone.
The 2021 stimulus law temporarily covered 85% of COBRA premiums, but that subsidy expired.
Today, most people pay the full amount unless a state program or a special window applies.
If you're between jobs, a marketplace plan through HealthCare.gov may qualify you for subsidies based on your estimated income.
A lower income year can mean a much smaller premium.
If you're married, check whether a spouse's plan offers a special enrollment period.
If you're under 26, a parent's plan may still cover you.
And if you're 65 or older, Medicare usually becomes the better path.
Timing matters more than most people realize.
COBRA enrollment generally runs 60 days from the date your coverage would end.
Miss it and you may be locked out until the next open enrollment.
One quiet advantage: you can sometimes enroll retroactively.
If you get sick during that 60-day window, you can sign up and have bills covered back to day one.
If you stay healthy, you can wait and keep your options open.
Call your HR department and get the exact monthly figure in writing.
Price a marketplace plan with your projected income.
Then compare the total cost, not just the premium.
A cheaper premium with a huge deductible can cost more than a pricey plan if you have ongoing prescriptions or regular appointments.
Run the numbers for your actual situation.
For many households, COBRA is the safety net of last resort, not the first stop.
It's there when you need continuity of doctors, an active treatment plan, or a network you can't replace quickly.
The bottom line: COBRA is real coverage at a real price, and that price has climbed right alongside everything else in your budget.
Knowing the number before the deadline is the difference between a calm decision and a panicked one.
Our take: treat COBRA as one option on a menu, not the default.
Final Thoughts
A 20-minute call to your HR team and a quick marketplace quote can save a household hundreds of dollars a month, and that's money most families can't afford to leave on the table.