Then the paperwork arrives, and the number at the bottom of the page stings even more.
If you were covered through an employer, you've probably heard about COBRA — the law that lets you keep that same health plan for a while after you leave.
What nobody mentions at the exit interview is the price tag.
When you worked there, your employer quietly paid most of your premium.
You only saw your share, maybe $150 or $200 taken out of each paycheck.
Under COBRA, that employer contribution disappears.
You're now on the hook for the full premium, plus a small administrative fee of up to 2 percent.
A typical family plan through an employer costs north of $2,000 a month in total premiums.
As an individual, you might have been paying $500 of that.
The COBRA bill arrives for the whole thing.
That's a jump of $1,500 a month, or $18,000 a year, for coverage that hasn't changed at all.
Single coverage runs cheaper but still hurts.
Average total premiums for an individual plan land around $700 to $800 a month in many states.
If you were paying $120 per paycheck, expect a bill roughly six times that size.
And COBRA isn't free to skip, either — go without coverage and one hospital visit can wipe out a year of savings.
The good news is you have options, and the clock matters.
You generally have 60 days from the date your employer sends the COBRA notice to decide.
Say no, and you can still sign up later — but only within that window, and only if you haven't already enrolled elsewhere.
Before you write that first check, price out a marketplace plan at HealthCare.gov.
If your income dropped after the layoff, you may qualify for subsidies that cut the monthly cost dramatically.
A plan that looks expensive at your old salary can become affordable at your new one.
Losing job-based coverage also opens a special enrollment window, so you don't have to wait for open season.
Also check whether you qualify for Medicaid.
In the states that expanded it, a single adult with modest income often gets covered for little or nothing.
It's worth ten minutes on your state's benefits website.
If you have a spouse or partner with employer coverage, compare adding yourself to their plan.
It's frequently cheaper than COBRA, though not always — family tier pricing can be brutal.
One more thing people miss: dental and vision.
COBRA covers them too, but the standalone price is often steep.
If you mainly need a cleaning twice a year, paying cash at the dentist may cost less than the monthly premium.
Treat that first bill as a signal to spend an afternoon comparison shopping instead of just paying it.
Final Thoughts
A few hours of paperwork can save you thousands over the year.