COBRA
COBRA
COBRA stands for the Consolidated Omnibus Budget Reconciliation Act, a federal law enacted in 1985 that allows individuals to continue their health insurance coverage for a limited time after leaving their job or experiencing other qualifying events.
Examples of Qualifying Events
- Termination of employment (voluntary or involuntary)
- Reduction in work hours
- Transition between jobs
- Death of the covered employee
- Divorce or legal separation
- Dependent child aging out of coverage
Cases
In a case where an employee is laid off, they may opt for COBRA to maintain their health insurance for up to 18 months, provided they pay the full premium plus a small administrative fee. Another example is when a covered spouse divorces, allowing them to continue their health coverage under COBRA for up to 36 months.