COBRA After a Layoff. What It Costs and How to Ask for Help

Among everything that changes immediately after a layoff, health insurance is often the most urgent. COBRA allows you to continue your employer's health plan after separation, but it comes with a real financial catch that surprises many people.

Why COBRA can be expensive

Under COBRA, you generally become responsible for the full premium cost of your health plan, including the portion your employer previously covered on your behalf. Without an employer subsidizing that cost, the monthly premium can represent a significant, sometimes shocking, expense at exactly the moment your income has stopped.

Why this is a negotiation point, not just a fact to accept

Because of this cost, asking an employer to cover or subsidize several months of COBRA premiums is one of the most consistently recommended items in severance negotiations. It is a request grounded in a specific, well-understood financial gap, which tends to make it a reasonable and commonly granted ask.

What to actually ask for

A few ways this request is commonly framed:

• A direct subsidy covering a specific number of months of COBRA premiums
• A lump-sum addition to severance specifically earmarked to offset health coverage costs
• Continued coverage under the employer's plan for a defined period, structured differently than standard COBRA

What to check before assuming COBRA is your only option

COBRA is not always the cheapest path to coverage. Depending on your income and state, marketplace health insurance plans may offer lower premiums than COBRA continuation, particularly if your household income during the gap qualifies you for subsidies. It is worth comparing both before committing to either.

Frequently asked questions

How long does COBRA coverage typically last? COBRA generally allows continuation of coverage for up to 18 months following a qualifying event such as a layoff, though specifics can vary.

Is asking an employer to subsidize COBRA a reasonable request? Yes, this is a commonly recommended and frequently granted request during severance negotiations, particularly for larger layoffs.

Is COBRA always more expensive than other health insurance options? Not necessarily. Marketplace plans may be less expensive depending on your income and location, and are worth comparing directly against COBRA costs before deciding.