Consolidated Omnibus Budget Reconciliation Act (COBRA)

The Consolidated Omnibus Budget Reconciliation Act (COBRA)is a federal law that provides individuals with the option to continue their group health insurance coverage for a limited time after certain qualifying events, such as job loss or reduction in work hours. COBRA allows individuals to maintain their health insurance coverage during a period of transition, and ensures that they have access to the same benefits and coverage as they did when they were employed.

Here are some key features of COBRA:

·      COBRA applies to group health insurance plans offered by employers with 20 or more employees.

·      COBRA provides individuals with the option to continue their group health insurance coverage for a limited time after certain qualifying events, such as job loss, reduction in work hours, divorce or legal separation, and death of the covered employee.

·      The individual must be enrolled in the employer's group health insurance plan at the time of the qualifying event to be eligible for COBRA coverage.

·      COBRA coverage is typically available for up to18 months for qualifying events such as job loss or reduction in work hours ,and up to 36 months for other events such as divorce or legal separation.

·      Individuals who elect COBRA coverage are responsible for paying the full cost of the premium, plus a 2% administrative fee.

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