Then the letter arrives from your former employer with a number that makes your stomach drop: the full price of keeping your health coverage under COBRA.
For millions of Americans, that figure now tops $700 a month for individual coverage and can clear $2,000 for a family plan.
And unlike regular employer insurance, your old company usually stops chipping in.
You pay the whole thing, plus a small administrative fee.
Here is why the sticker shock has gotten worse.
Health insurance premiums climbed again this year, and COBRA simply passes those increases straight to you.
Insurers blame rising hospital costs, expensive new drugs, and higher wages for nurses and staff.
Those costs flow downhill to anyone buying coverage on their own.
Say your old job covered a $650 monthly premium and you paid $150 of it.
Once you're on COBRA, that $650 becomes your problem, often with a 2% admin charge on top.
For a family, the gap between the subsidized rate and the full rate can exceed $1,500 a month.
That is more than many people's rent or car payment.
So workers do what workers do: they gamble.
They skip coverage, delay a doctor visit, or let a prescription lapse.
One emergency room trip later, they're staring at a bill that dwarfs the premium they were trying to avoid.
There is a lifeline, but few people know about it.
If you lose job-based coverage, you can usually buy a plan on HealthCare.gov or your state marketplace.
Depending on your income, you may qualify for subsidies that cut the monthly cost dramatically.
For many families, a marketplace plan costs far less than COBRA for similar coverage.
You generally get 60 days to enroll after losing coverage, and missing that window can lock you out until the next open period.
COBRA also gives you 60 days to decide, and you can sometimes enroll retroactively if something goes wrong.
That flexibility is real, but it is not a reason to sit on your hands.
A few practical moves can save real money.
Compare COBRA against a marketplace plan side by side, not by gut feel.
Check whether your doctors and medications are covered either way.
Look at the deductible, not just the premium, because a cheap plan with a huge deductible can bite hard.
And if you have savings or a spouse with coverage, weigh whether a temporary short-term plan makes sense, though those often exclude pre-existing conditions.
Rent, groceries, and credit card bills don't pause when your income does.
That is why so many people treat health coverage as the thing they can cut.
It is also why the choice feels impossible.
The honest take: COBRA is a safety net, not a bargain.
It protects continuity of care, which matters if you're mid-treatment or love your doctors.
But for most healthy workers between jobs, a subsidized marketplace plan will stretch your dollar further.
Final Thoughts
Compare before you commit, because the default option is often the most expensive one.