Then the COBRA paperwork arrives, and the sticker shock hits.
For millions of Americans, continuing their employer health plan sounds like the safe move—until they see the monthly bill.
COBRA lets you keep your workplace coverage after leaving a job, but you pay the full premium yourself.
Your employer's share disappears, and you're often on the hook for the entire tab plus a small administrative fee.
According to industry surveys, average annual premiums for employer-sponsored family coverage now top $25,000.
Under COBRA, that's roughly $2,000 or more a month out of your own pocket.
Single coverage runs $600 to $750 monthly in many plans, and those figures climb every year with medical inflation.
Here's the part most people miss: COBRA doesn't come with a discount.
You're paying the same rate your company negotiated, just without the subsidy that once covered 70% to 80% of it.
That gap is why so many households blink at the first invoice.
You generally have 60 days to enroll after coverage ends, and your payments must be current.
Miss a window and you can be locked out entirely—even if you had a serious medical need.
The good news is that COBRA isn't your only option.
If you lose job-based coverage, you typically qualify for a Special Enrollment Period on the Affordable Care Act marketplace.
Subsidies there are based on income, and after a job loss your income may drop enough to slash your premium dramatically.
For a family of four earning $60,000, marketplace tax credits could cut a $1,800 plan to a few hundred dollars—or less in some states that expanded Medicaid.
That's often thousands cheaper than COBRA over a year.
Short-term health plans look tempting at $150 a month, but read the fine print.
They can exclude pre-existing conditions, skip maternity and mental health coverage, and cap what they'll pay.
One hospital stay could wipe out the savings.
If you're between jobs briefly and have ongoing care with doctors you love, COBRA can still make sense.
Keeping the same network and deductibles avoids starting over mid-treatment.
Compare your COBRA quote side-by-side with marketplace plans before you commit.
Ask your HR department for the exact COBRA rate in writing.
And if you have a spouse with coverage, a special enrollment there is often the cheapest path of all.
Dental and vision are usually separate under COBRA, so factor those in.
Prescription costs can also shift if you switch plans, so run your medication list through each option's formulary.
The bottom line: COBRA is convenient, not cheap.
Treat the enrollment window as a deadline to shop, not a default to accept.
Our take: COBRA remains a useful safety net, but it's rarely the best deal for a laid-off worker in 2025.
Final Thoughts
Spend an afternoon comparing marketplace options before you sign—those few hours could save your household thousands.