Understanding COBRA Insurance
COBRA, or the Consolidated Omnibus Budget Reconciliation Act, is a federal law that allows workers and their families who have lost their employer-provided health insurance due to specific life events to continue the same group health coverage for a limited period. Under COBRA, qualified individuals have the opportunity to continue their health benefits temporarily, even when their coverage under the group health plan would otherwise come to an end.
These qualifying events trigger your eligibility for COBRA insurance and can range from voluntary or involuntary job loss to transitions between jobs. Other events such as a reduction in work hours, death, and divorce also qualify. Understanding these events is essential for knowing when you can opt for COBRA coverage to maintain your health benefits.
In addition to a qualifying event, continuation of the health plan is in part dependent on the size of the employer. The business must have had 20 or more employees in the previous year.
Learn The Rules Of COBRA
For more on the rules of COBRA insurance and how it can support you and your family during important life transitions, check out our guide: What Is COBRA Insurance?