Careful: COBRA coverage can bite you

It has happened. You were or are going to be laid off. Your soon-to-be-last employer has informed you that you can select COBRA and pay the full 100 percent (plus 2 percent administration) of the premium. You think, “Great, I am covered.”

However, you find out 45 to 60 days later that your premium is two or three times higher than what you previously contributed. The latter is the norm. I have seen singles and families with $600 and $1,200 monthly premiums, respectively. There go your layoff-package dollars.

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