Cobra insurance allows you to keep your health benefits after losing a job. This is important to maintain consistent coverage, allowing you to avoid problems with pre-existing conditions down the road. Unfortunately, Cobra health insurance is extremely expensive. It's not that the rates are raised, it's simply that your former employer is no longer footing part of the bill. Many companies choose to pay some part of their employee's health insurance expense. This can range anywhere from 20% of the bill to the full premium. When you are no longer employed by the company they will not continue paying that portion of the premium. It will be passed directly on to you, allowing you to see the full cost of your health care coverage.