What is COBRA?

Consolidated Omnibus Budget Reconciliation Act (COBRA) allows employees to continue to receive benefits under their employer's group health plans after losing coverage due to a change from full-time to part-time employment, or after termination. From an employee's perspective, COBRA coverage is essentially the same as normal (full-time) coverage, except for two primary differences:

• Employees pay their entire premium, plus an administrative fee. Companies have the option to cover the premium, but are not required to.
• COBRA coverage is temporary. Actual duration depends on the type of COBRA (state or federal), but usually lasts up to 18 months.