COBRA Health Insurance After Job Loss: 2025 Costs & Better Options
Just Lost Your Job? Here's What You Need to Know About COBRA
Did you just lose your job? Are you thinking about retiring? Maybe you want to start your own business? If so, you're probably worried about health insurance.
COBRA (Consolidated Omnibus Budget Reconciliation Act) health insurance can help. But it costs a lot of money. The good news? You have other options that cost much less.
What is COBRA Health Insurance?
COBRA lets you keep your work health insurance after you lose your job. You can keep the same plan. You can keep the same doctors. But now you have to pay the full cost.
Who Can Get COBRA?
You can get COBRA if:
- You lost your job (fired or quit)
- Your work hours got cut
- You're getting divorced
- You're retiring
- You worked for a company with 20+ workers
Why Does COBRA Cost So Much Money?
Here's the big secret most people don't know: Your boss was paying most of your health insurance costs.
How Much Your Boss Really Paid
When you had a job, here's what happened:
- You paid: About 21% of your health insurance
- Your boss paid: About 79% of your health insurance
So if your health insurance really costs $600 per month, you only paid about $125. Your boss paid the other $475.
With COBRA, you pay the full $600 plus an extra 2% fee. That's $612 per month instead of $125!
How Much Does COBRA Health Insurance Cost in 2025?
COBRA costs 102% of your full health plan premium. Here's what people are paying:
If You're Single:
- Monthly cost: $600 to $750
- Yearly cost: $7,200 to $9,000
If You Have a Family:
- Monthly cost: $2,000 to $2,100
- Yearly cost: $24,000 to $25,200
These costs change based on where you live and what plan you had.
Why the Sticker Shock is Normal
Most people get shocked by COBRA costs. This is normal! You went from paying $100-200 per month to paying $600-2,100 per month. Many people don't understand why COBRA is so expensive.
The reason is simple: You now pay what your health insurance really costs. Your boss was helping pay for it before.
How Long Does COBRA Last?
COBRA health insurance doesn't last forever:
- Job loss: 18 months
- Divorce or death: 36 months
- Disability: 29 months
The 60-Day Rule You Must Know
After you lose your job, you have 60 days to choose COBRA. If you wait longer than 60 days, you can't get COBRA at all.
Important Dates:
- Days 1-60: You can choose COBRA
- Day 61: Too late - you can't get COBRA
- 45 days after choosing: You must pay your first bill
Better Options Than COBRA (That Cost Less Money)
Most people think COBRA health insurance is their only choice. That's not true! Here are better options that often cost much less.
1. Marketplace Health Plans (Often Much Cheaper)
If you're unemployed, you may be able to get affordable health insurance through the Marketplace with savings based on your income.
Many people who lose their jobs get help paying for health insurance. This help can make your monthly cost very low.
What You Might Pay:
- With help: $50 to $200 per month
- Without help: $300 to $500 per month
Why It's Better:
- Costs much less than COBRA
- Same good coverage
- No time limit (you can keep it as long as you want)
- You might get help with doctor visits and medicine costs
2. Private Health Insurance Plans
You can buy health insurance directly from insurance companies. This often costs less than COBRA.
Good Things About Private Plans:
- Often cheaper than COBRA
- You pick the plan you want
- You can keep it as long as you want
- Might have better benefits
3. Short-Term Health Insurance
If you just need coverage for a few months, short-term insurance costs much less.
Good Things:
- Much cheaper than COBRA
- Quick to get (sometimes same day)
- You pick how long you want it (1-12 months)
Things to Know:
- Doesn't cover everything
- Doesn't help with ongoing health problems
- Just for temporary needs
When COBRA Might Be Your Best Choice
COBRA might be right for you if:
- You're getting expensive medical care right now
- You take costly medicines that your current plan covers
- You're close to meeting your yearly deductible
- You think you'll get a new job with health insurance soon
Big Mistakes People Make With COBRA
Mistake 1: Not Looking at Other Options
Most people pick COBRA without looking at other choices. Don't do this! Other options often cost much less.
Mistake 2: Missing Payment Due Dates
COBRA has strict rules about paying on time. If you're late, you lose your coverage. You can't get it back.
Mistake 3: Thinking COBRA is Exactly Like Your Work Plan
Sometimes COBRA is different from your work plan. You might have different doctors you can see.
How to Pick the Best Health Insurance After Job Loss
Step 1: Add Up All Costs
Don't just look at monthly costs. Look at:
- Monthly payments
- Yearly deductible
- Most you'd pay in a year
- Medicine costs
Step 2: Think About Your Health Needs
Ask yourself:
- What medicines do I take?
- What doctors do I see?
- Do I have any health problems?
- Does anyone in my family need special care?
Step 3: Think About Time
Consider:
- How fast do I need coverage?
- How long will I need this insurance?
- Will I get a job with health insurance soon?
Get Free Help Choosing the Right Plan
Picking between COBRA and other health insurance is hard. The wrong choice can cost you thousands of dollars.
Our licensed experts help people find the best health insurance after losing their jobs. We help for free.
Why Use Our Free Service?
- No cost to you - Insurance companies pay us, not you
- We know all the plans in your area
- We help you get discounts on Marketplace plans
- We help you sign up for the plan you pick
- We help people who lost their jobs all the time
What People Say About Our Help
"I was going to pay $1,200 a month for COBRA. My advisor found me a plan for $300 a month with better coverage. I saved enough to pay my house payment!" - Sarah K., Phoenix
"After I retired, I thought COBRA was my only choice. My advisor found me a private plan that saved me $8,000 a year with the same doctors." - Michael R., Denver
Get Your Free Help Today - Don't Wait!
Don't let the COBRA deadline make you rush into an expensive choice. Our experts can look at all your options and help you pick the best one for your health and your wallet.
Schedule Your Free No-Obligation Consultation
What Happens When You Call
- We look at COBRA vs. other options for you
- We see if you can get discounts on Marketplace plans
- We check if you can keep your doctors with other plans
- We show you how much each option costs per year
- We help you sign up for the plan you choose
Common Questions About COBRA
Can I cancel COBRA if I find something better?
Yes, you can cancel COBRA anytime. But you can't get COBRA back later. Make sure you have other coverage first.
What happens if I pay COBRA late?
Your COBRA stops if you pay late. You usually have 30 days, but after that, you can't get COBRA back.
Can I change my COBRA plan?
You can only make changes when your old company's workers can make changes to their plans.
Is COBRA the same as my work plan?
Usually yes, but sometimes companies offer different plans to COBRA users. Your doctors might be different too.
Can my family get COBRA too?
Yes, if your family was on your work plan, they can get COBRA too.
COBRA vs. Other Options: Quick Comparison
| Option | Monthly Cost | How Long | Good For |
|---|---|---|---|
| COBRA | $600-2,100 | 18 months | Keeping same doctors |
| Marketplace (with help) | $50-200 | As long as you want | Saving money |
| Marketplace (no help) | $300-500 | As long as you want | Good coverage, less than COBRA |
| Private Insurance | $250-600 | As long as you want | Custom plans |
| Short-term | $100-300 | 1-12 months | Temporary coverage |
Don't Wait - Your COBRA Clock is Ticking
Remember: You only have 60 days after losing your job to choose COBRA. But don't rush! Take time to look at all your options.
Many people save hundreds or thousands of dollars by picking something other than COBRA.
