When people leave a job, they usually fixate on the last paycheck.
The bigger shock tends to arrive a few weeks later in a plain envelope: a COBRA premium notice that can run higher than a mortgage payment.
COBRA lets you keep your employer's health plan after quitting, getting laid off, or losing coverage.
The catch is that you now pay the full freight — the part your boss used to cover plus your own share, and often a 2% administrative fee on top.
According to KFF's annual survey, the average family premium for employer-sponsored coverage hit about $26,993 this year, with workers typically contributing around $6,850 and employers covering the rest.
On COBRA, you'd owe nearly the whole thing — roughly $2,250 a month for family coverage, or about $27,000 a year.
For single coverage, the average total premium runs about $9,325, which means a COBRA bill in the neighborhood of $780 a month.
That's real money for someone who just lost a steady income.
Older workers and those in small firms often face the steepest tabs, and some industries with generous plans push costs well past the national average.
A 55-year-old in a high-cost plan could see quotes north of $1,000 a month for just themselves.
You generally have 60 days from the date coverage ends — or from the date you get the COBRA election notice, whichever is later — to decide.
Pay premiums late and the plan can cancel you retroactively.
The Health Insurance Marketplace at Healthcare.gov offers subsidized plans, and a special enrollment period opens when you lose job-based coverage.
For many households, an ACA plan with a premium tax credit costs hundreds less per month than COBRA.
Medicaid may also be an option in states that expanded eligibility.
A few practical moves can shrink the damage.
Compare your COBRA quote against at least two marketplace plans before deciding.
Check whether you qualify for subsidies based on your projected income, not last year's.
Look at whether a spouse's plan offers a special enrollment window.
And if you're healthy with low medical needs, a lower-tier marketplace plan might cover emergencies for far less.
One more wrinkle: your old employer must offer COBRA only if it has 20 or more employees.
Smaller companies fall under state mini-COBRA rules, which vary widely and often run for shorter periods.
Before you sign that resignation letter, ask HR for the full COBRA rate in writing.
Knowing the number ahead of time turns a panic into a plan.
My take: COBRA was designed as a safety net, but for most families it now functions as a luxury product.
Final Thoughts
Treat it as a bridge of last resort, not a default, and price out marketplace coverage the same week you lose your job — your wallet will thank you.