History and Law Behind COBRA Health Insurance Continuation

History and Purpose of COBRA: Ensuring Continued Health Coverage

The Consolidated Omnibus Budget Reconciliation Act (COBRA) was signed into law by President Ronald Reagan on April 7, 1986, as part of a larger budget bill aimed at reducing the federal deficit. Sponsored by Representative Pete Stark of California, COBRA was created to address the critical need for employees and their families to retain health insurance during periods of job loss or transition.

COBRA allows individuals and their dependents to temporarily continue employer-sponsored health coverage after qualifying life events, such as job loss, reduction in work hours, or other significant changes. By offering this safety net, COBRA has helped millions of Americans maintain access to healthcare during transitional periods.

To qualify for COBRA, individuals must have been enrolled in their employer’s health plan on the day before a qualifying event. Additionally, the employer must have had at least 20 employees who worked over 1,000 hours in the previous calendar year.

showing COBRA as an abbreviation for consolidated omnibus budget reconciliation act

COBRA is an Abbreviation

COBRA is an abbreviation for the Consolidated Omnibus Budget Reconciliation Act. While it is not a true acronym, it serves as a commonly used shorthand for this federal law, which allows employees and their families to continue their health insurance coverage after job loss or other qualifying events. Over time, “COBRA” has become closely associated with the continuation of health benefits under these rules

Federal Oversight of COBRA

The federal government oversees COBRA through two agencies: the Department of Labor (DOL) and the Department of Health and Human Services (HHS). The DOL ensures employers follow COBRA rules, while the HHS makes sure COBRA coverage meets the standards of the Affordable Care Act.

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H.R.3128 – Consolidated Omnibus Budget Reconciliation Act of 1985

The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) is a comprehensive piece of legislation that addresses various aspects of federal law, including health insurance continuation provisions. The law outlines a series of sections that detail the responsibilities of employers, as well as the rights and obligations of employees.

The full text of COBRA is available through the official website for the U.S. Congress.

Key Provisions and Employer Requirements

The following is an explanation of Consolidated Omnibus Reconciliation (COBRA) as it relates to the continuation of employer-sponsored group health plans:

  • Section 601. Requires employers with 20 or more employees to offer continuation of health insurance coverage to employees and their dependents who lose coverage due to certain qualifying events, such as termination of employment, reduction in hours, death of the employee, divorce, or a dependent child becoming ineligible.
  • Section 602. Sets forth the requirements for employers to provide COBRA continuation coverage, including the length of time coverage must be offered, the amount of the premium that must be paid, and the notice requirements.
  • Section 603. Establishes a process for employees and their dependents to appeal an employer’s decision to deny COBRA coverage. The appeal must be filed with the Department of Labor within 60 days of the denial.
  • Section 604. This section provides for enforcement of COBRA by the Department of Labor. The Department of Labor can bring civil actions against employers who violate COBRA.

Mini-COBRA and State Continuation Laws Nationwide

Many states have enacted Mini-COBRA legislation for businesses with 19 or fewer employees. Learn more about Mini-COBRA and State Continuation Laws and how they affect your healthcare coverage.

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Remain Insured

Accident Only plans start at $44*
with coverage starting tomorrow!

Call us
877-262-7241

Get A Quote, Enroll Online
View Plans

Temporary health insurance is a popular, affordable solution to cover gaps in coverage while you are between Major Medical plans.


*Based on state and age

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