That COBRA Letter Just Gave You Sticker Shock (Now What?)

$1,847 per month.

That’s what COBRA wanted from my client Jennifer when she left her Boca Raton marketing job. For the same insurance that cost her $200/month as an employee.

She literally thought it was a typo. It wasn’t.

If you just got your COBRA letter and need to sit down, I get it. After 8 years of helping Palm Beach County residents navigate job transitions, I’ve seen every possible reaction to COBRA costs. Let’s talk about whether it’s worth it and what else you can do.

Why Is COBRA So Expensive? (The Truth They Don’t Tell You)

Here’s the shock: COBRA isn’t more expensive than your employer coverage. It’s the REAL cost. Your employer was probably paying 70-80% without you knowing it.

That $200/month you paid? Your employer was kicking in $1,400. Now it’s all on you, plus 2% for administration. Welcome to the real world of health insurance costs.

When COBRA Actually Makes Sense (Yes, Sometimes It Does)

Scenario 1: You’re Mid-Treatment

My client Robert was halfway through cancer treatment at Boca Regional when he lost his job. Switching insurance meant new deductibles, possibly new doctors, and treatment delays. For him, $2,000/month COBRA was cheaper than starting over.

Scenario 2: You’ve Met Your Deductible

It’s October, you’ve had surgery, met your $5,000 deductible, and everything’s covered now. Two months of expensive COBRA might beat starting a new deductible.

Scenario 3: You’re Getting a New Job Soon

Starting a new job in 6 weeks? COBRA might bridge that gap better than new insurance you’ll quickly cancel. But if it’s longer than 2-3 months, keep reading.

When to Run from COBRA (Most of the Time)

The Healthy Job Seeker: Between jobs, no major health issues? COBRA is probably overkill. We can find coverage for a fraction of the cost.

The Long-Term Unemployed: COBRA lasts 18 months max. If you’re facing extended unemployment, start sustainable coverage now, not when COBRA runs out.

The Early Retiree: Retiring at 60? That’s 5 years until Medicare. COBRA for 18 months, then what? Plan smarter from day one.

Your COBRA Alternatives in Palm Beach County

Option 1: ACA Marketplace Plans

Lost your job = special enrollment period. No waiting until November! Plus, job loss might qualify you for subsidies.

Jennifer’s story: COBRA wanted $1,847/month. Marketplace plan with subsidies? $385/month. Same doctors, similar coverage, $1,462 monthly savings.

Option 2: Spouse’s Insurance

Job loss is a qualifying event for your spouse’s plan too. Even if their open enrollment was months ago, you can join now.

Option 3: Short-Term Insurance (Carefully)

If you’re healthy and starting a new job soon, short-term might work. But read my other blog post first – these plans have serious limitations.

The 60-Day COBRA Decision Timeline

You have 60 days to decide on COBRA. Here’s how to use them wisely:

Days 1-7: Breathe. Don’t panic-buy COBRA. You can elect it retroactively.

Days 8-21: Research alternatives. Compare marketplace plans, check spouse coverage, calculate real costs.

Days 22-45: Make your decision. If you need COBRA, elect it. If not, enroll in your alternative.

Days 46-60: Buffer zone. Don’t wait until day 60 – mail delays happen!

Pro tip: COBRA is retroactive. If you get sick on day 30 and haven’t elected, you can still choose COBRA and have coverage back to day 1. It’s like insurance for your insurance decision.

Real Math: COBRA vs. Marketplace

Sarah, 45, Delray Beach:
– COBRA: $1,650/month
– Marketplace (Silver plan): $485/month after subsidies
– Same network, similar benefits
– Annual savings: $13,980

Mike, 58, Wellington:
– COBRA: $2,100/month
– Marketplace (Gold plan): $612/month after subsidies
– Better prescription coverage
– Annual savings: $17,856

The Hidden COBRA Traps

Trap 1: The Payment Game
Miss one payment by even one day? You’re done. No grace period, no excuses, no getting back on.

Trap 2: The Subsidy Surprise
Taking COBRA might disqualify you from marketplace subsidies later. Don’t lock yourself out of thousands in savings.

Trap 3: The 18-Month Cliff
COBRA ends. Then what? If you’re not Medicare-eligible, you better have a plan.

Your COBRA Decision Framework

Take COBRA if:
– You’re mid-treatment for something serious
– You’ve met your deductible and it’s late in the year
– You’re starting a new job within 60 days
– The math actually works (rare but possible)

Skip COBRA if:
– You’re healthy and between jobs
– You’ll need coverage for more than 3 months
– Marketplace subsidies make alternatives way cheaper
– You have access to spouse coverage

Don’t Make This Expensive Decision Alone

COBRA decisions are complicated and costly. One wrong choice could cost you thousands. But with the right guidance, you might save enough to take a nice vacation with the money you’re not spending on overpriced insurance.

Let’s run your numbers together. Bring your COBRA letter, and I’ll show you all your options – not just the expensive one your former employer sent.

Call me at 954-646-3666 or email yheaven@aol.com. The consultation is free, and the savings could be massive.

P.S. Jennifer, who got that $1,847 COBRA letter? She’s happily paying $385/month for great coverage and used the savings to start her own business. Sometimes losing a job is exactly the push you need.

Yvonne Heaven helps Palm Beach County residents navigate job transitions without breaking the bank on health insurance. Because COBRA shouldn’t take a bigger bite out of your budget than necessary.