COBRA stands for Consolidated Omnibus Budget Reconciliation Act, which is a federal law that allows workers and their families who have lost their employer-provided health insurance due to specific life events to continue the same group health coverage for a limited period. Under COBRA, qualified individuals have the opportunity to continue their health benefits temporarily, even when their coverage under the group health plan would otherwise come to an end. The law outlines how employees and family members may elect continuation coverage and requires employers and plans to provide notice.

COBRA applies to most private sector businesses with 20 or more employees and requires an employers group health insurance plan to continue after qualifying life events such as termination or a reduction of a covered employees hours, divorce or legal separation from a covered employee, death of a covered employee, Medicare eligibility for a covered employee, and loss of a childs or dependents health insurance coverage under the plan. Qualified beneficiaries under COBRA include an employee, spouse, former spouses, and dependent children.

Getting COBRA insurance starts with a qualifying event that would terminate a person’s employer-based health insurance. The cost of COBRA coverage can range from $400 to $700 per month, per individual, and the employer that makes this plan available is responsible for enrollment, premium payments, the status of coverage, and cancellations. When a qualifying life event happens, the health plan will send an election notice that the individual will have 60 days to respond to. If they elect to take COBRA coverage, their employer may pay a portion of or the full amount of their insurance premium.