What is COBRA ?
COBRA is the abbreviation for the Consolidated Omnibus Budget Reconciliation Act of 1985. It is a law that requires employers with 20 or more employees to allow employees and their dependents to keep their group health coverage for a time after they leave that job under certain conditions. It is called "continuation" coverage. Generally, COBRA allows the ex-worker and their dependents to keep their existing group coverage for 18 months (29 or 36 months in some cases) after termination from the job. Generally, the ex-worker will have to pay both the ex-employee's share and the previously paid employer's share of the premium. Some state's require employers with less than 20 employees to keep their group health coverage. Speak to your local CPA or your State's Insurance Department for additional information on your COBRA rights.
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