Guide to COBRA Insurance: Rules, Costs and Eligibility Explained
Behind the 1985 Act: Ensuring Continued Health Coverage
The Consolidated Omnibus Budget Reconciliation Act (COBRA) was signed into law by President Ronald Reagan on April 7, 1986. This legislation was a result of Congress’s recognition of the growing need for employees to maintain health insurance coverage during periods of job transition or loss. The act was a part of a larger budget bill designed to reduce the federal budget deficit.
COBRA’s primary sponsor was Representative Pete Stark of California, and its main aim was to ensure that employees and their families had the option to continue their group health insurance for limited periods under specific circumstances. Over the years, COBRA has been instrumental in providing a safety net for millions of Americans during transitional phases in their careers.