Then the paperwork arrives, and the number next to "COBRA" can feel like a punch to the gut.
COBRA lets you keep your employer's health plan for up to 18 months after leaving a job.
The catch: you pay the full premium yourself, plus a small administrative fee.
Your employer's share vanishes overnight.
That's why the average family premium under COBRA often runs $1,500 to $2,200 a month, according to industry surveys.
Individual coverage frequently lands between $550 and $750 monthly.
For many households, that's more than a mortgage payment.
The sticker shock makes sense once you see the math.
Employers typically cover 70% to 80% of premiums for their workers.
When you leave, that subsidy leaves with you.
You're now paying both sides of a bill you only ever saw half of.
Here's what trips people up: COBRA isn't automatically cheaper just because it's your old plan.
You may find a marketplace plan with similar coverage for hundreds less, especially if your income drops after a layoff.
A lower income can qualify you for subsidies that shrink monthly premiums dramatically.
You generally have 60 days from the date you lose coverage to elect COBRA, and the coverage can be backdated to that loss date.
That window is a safety net, not a deadline to panic.
You can shop the marketplace during that same stretch and compare real numbers side by side.
A few practical moves can soften the blow.
First, ask HR for the exact COBRA premium in writing before your last day.
Second, check Healthcare.gov or your state exchange for quotes using your new estimated income.
Third, look into short-term plans only with caution, since they often exclude pre-existing conditions and skip essential benefits.
And if you're married, see whether joining a spouse's plan during their open enrollment or a qualifying life event costs less.
Some workers qualify for a special enrollment period on the marketplace that lasts 60 days after coverage ends.
Miss it, and you may be stuck waiting until the next open enrollment.
Dental and vision are usually separate line items under COBRA, so read the breakdown carefully.
Dropping those and buying standalone plans can save $50 to $100 a month for some families.
Prescription coverage is worth keeping if you rely on expensive medications, but generics-only households may find less value.
One more thing: COBRA is a bridge, not a forever plan.
Treat it as temporary coverage while you sort out a longer-term option.
Retirees, in particular, should compare COBRA against Medicare timelines, because enrolling late can trigger lifetime penalties.
If the premium truly doesn't fit your budget, call the insurer and ask about payment plans.
Some carriers allow monthly installments, though you risk losing coverage if you fall behind.
Our take: COBRA is valuable protection, but it's rarely the cheapest path.
Spend one afternoon comparing marketplace quotes before you sign anything.
Final Thoughts
The difference between the first number you see and the one you actually pay can be thousands of dollars a year.