Definition: COBRA (Consolidated Omnibus Budget Reconciliation Act) gives employees and their families who lose their health benefits the option to continue group health benefits provided by their group health plan for limited periods of time (usually up to 18 months) under certain circumstances such as voluntary or involuntary job loss, reduction in the hours worked, transition between jobs, death, divorce, and other life events.
Group health plans which cover 20 or more employees are required to provide COBRA benefits, however the individual who is entitle to coverage is responsible for paying the full health insurance premium - up to 102 percent of the cost to the plan.
For more information visit the Department of Labor web site:
COBRA
Also Known As: Consolidated Omnibus Budget Reconciliation Act
