The COBRA Law
COBRA (Consolidated Omnibus Budget Reconciliation Act) is a federal law that allows certain individuals to continue their employer-sponsored health insurance coverage after they leave their job or experience a qualifying life event, such as a divorce or the death of a spouse.
COBRA is not an insurance company, but rather a law that requires employers to offer their former employees the option to temporarily continue their health insurance coverage at their own expense. It is important to note that COBRA coverage is not automatic and individuals must elect to continue their coverage within a certain timeframe in order to be eligible.
What Is COBRA, Then?
COBRA insurance is a term most people are familiar with. It refers to paying out-of-pocket for group health insurance coverage that was in effect when an employee lost his or her job or when a family member loses access to the group plan.