The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers and their families who lose their health benefits the right to choose to continue group health benefits provided by their employer group health plan for limited periods of time.

 

Under certain circumstances such as; a voluntary or involuntary job loss, a reduction in the hours worked, a transition between jobs, death, divorce, and or other life changing events. Qualified individuals may be required to pay up to 102% of the entire premium to maintain coverage for a pre-determined period of time.

 

COBRA outlines how employees and family members may elect their continuation of coverage. It also requires that employers provide notices and establishes compliance mandates.