Then the COBRA paperwork shows up, and the real number hits.
The average family premium for employer-sponsored health coverage climbed past $26,000 a year in 2024, according to the Kaiser Family Foundation's annual survey.
Under COBRA, you pay nearly all of it yourself, plus a modest administrative fee.
That's roughly $2,200 a month for family coverage, or about $700 for a single person.
Your employer used to cover most of that bill.
The moment you're laid off or quit, that contribution vanishes.
You keep the same doctors and the same plan, but you're now footing a cost that was previously split.
Federal law lets employers charge former workers the full premium plus up to 2% for paperwork.
COBRA doesn't expire when you find a new job.
It runs 18 months for most voluntary departures and terminations, and up to 36 months for dependents in certain cases like death or divorce.
Miss a single payment, and coverage can end with no grace period beyond the plan's rules.
You generally have 60 days from the date you receive the election notice to sign up, and coverage can be backdated to the day your job-based plan ended.
Many workers assume COBRA is their only bridge.
The health insurance marketplace, created under the Affordable Care Act, offers subsidized plans that often cost far less.
Losing job-based coverage counts as a qualifying life event, so you can enroll outside the standard open period.
For a family of four with moderate income, premium tax credits can cut monthly costs dramatically.
In some states, expanded Medicaid may cover you at little or no cost if income drops low enough.
Short-term health plans exist too, but they come with warnings.
They can deny coverage for pre-existing conditions, skip maternity care, and cap what they pay.
If you're between jobs and expect a short gap, COBRA can be a bridge worth keeping.
It preserves your network and your deductible progress.
If the gap stretches or the premium eats your rent, compare marketplace options before writing that first check.
One more thing most people never hear: you can sometimes enroll in COBRA, then drop it mid-year when a marketplace plan starts.
You aren't locked in for the full 18 months.
The honest takeaway: COBRA was designed to protect continuity, not your wallet.
Treat that premium quote as a starting point for comparison, not a final answer.
Final Thoughts
A few hours on the marketplace site can save a household thousands over a single year.