Consolidated Omnibus Budget Reconciliation Act (COBRA)

The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a federal law that allows people to keep their health insurance coverage for a limited time after losing their job or experiencing a qualifying life event, like divorce or reduced work hours. Typically, it applies to businesses with 20 or more employees. While it enables individuals to maintain their insurance, they usually must pay the full premium cost, which can be higher than what they paid as an employee. COBRA provides essential temporary support to help individuals transition during periods of unemployment or other life changes.