What is COBRA?
August 7, 2023
COBRA is short for the Consolidated Omnibus Budget Reconciliation Act of 1985.
It’s a federal law that allows certain employees and covered dependents to elect to continue their same group health coverage, at their own cost, when it would otherwise be discontinued because of a qualifying event.
These qualifying events include termination or reduction in hours, death of a covered employee, divorce or legal separation, Medicare entitlement, and loss of dependent status. Generally, COBRA can be used for up to 18 months, and in some circumstances, up to 36 months.
COBRA applies to most group health plans that are sponsored by employers with 20 or more employees on more than 50% of their typical business days in the previous calendar year. COBRA doesn’t apply to plans sponsored by the federal government, churches, or church-related organizations.
This Q&A does not constitute legal advice and does not address state or local law. Visit U.S. Department of labor for more information.