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Congress passed the landmark Cobra insurance act, officially the Consolidated Budget Reconciliation Act (COBRA), health benefit provisions in 1986. The law amended the Employee Retirement Income Security Act (ERISA), the Internal Revenue Code and the Public Health Service Act to provide continuation of group health coverage that otherwise might be terminated with an employee’s employment.

The Cobra Insurance Act contains provisions giving certain former employees, retirees, spouses, former spouses and dependent children the right to temporary continuation of health coverage at group rates. This insurance coverage, however, is only available when coverage is lost due to certain specific events. Group health coverage for participants under the cobra laws is usually more expensive than health coverage for active employees, since the employer pays part of the premium for active employees while Cobra participants pay the entire premium themselves.

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The HR Library has more COBRA resources like these:

What is Cobra?

Cobra continuation rights

Who is entitled to Cobra benefits

Common questions and answers about the Cobra insurance

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