COBRA Insurance Is A Federal Law
In 1985, the United States government passed the Consolidated Omnibus Budget Reconciliation Act or COBRA, for short. The law gave workers and their families the right to continue their workplace health insurance coverage after a qualifying event occurs where they would otherwise lose their health plan.
Workers use COBRA after voluntary or involuntary termination. Additionally, COBRA continuing health coverage is available to former spouses after divorce, retirees before they begin Medicare and children that lose their dependent status.
COBRA is available to qualified beneficiaries who were on an employer group health plan for at least 1 day, where the business has 20 or more fulltime workers.