Both the Consolidated Omnibus Budget Reconciliation Act (COBRA) and many state laws give employees the right to continue coverage and/or convert to individual policies after leaving the group. What is COBRA? COBRA is intended to ensure that employees and their dependents can maintain their group healthcare coverage following certain events that otherwise would result in a termination of coverage. COBRA's protections are temporary and are intended as a stopgap until insurance is obtained from another source, such as a new employer. Employers do not have to pay for any portion of the premiums for COBRA coverage, but the beneficiaries get to maintain their insurance at less expensive group rates. A temporary 65 percent premium subsidy for up to 9 months went into effect on February 17, 2009, for workers who were involuntarily terminated on or after September 1, 2008, through December 31, 2009, and for their families. The subsidy program was first extended to apply to workers involuntarily terminated through February 28, 2010, and to provide assistance for up to 15 months. An extension through March 31, 2010, was enacted. An additional extension through May 31, 2010, was enacted on April 15, 2010. Additional extensions were not enacted, so individuals terminated on or after June 1, 2010, were not entitled to the premium subsidy.