Consolidated Omnibus Budget Reconciliation Act (COBRA)

The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a federal law that provides health insurance continuation coverage to employees and their families who lose their health insurance coverage due to certain events, such as job loss, reduction in hours, or the death of a covered employee. COBRA coverage is also available to spouses and dependent children who lose their coverage due to a divorce or legal separation from the covered employee.

COBRA coverage is optional for employees and their families, but it can be a valuable source of health insurance coverage if they lose their job or their health insurance coverage through their employer. COBRA coverage is typically more expensive than the health insurance coverage that was offered through the employer, but it can provide peace of mind knowing that you have health insurance coverage if you need it.

There are a few things to keep in mind if you are considering COBRA coverage. First, you must sign up for COBRA coverage within 60 days of the date your coverage ends. If you do not sign up for COBRA coverage within 60 days, you will lose your right to COBRA coverage. Second, COBRA coverage is only available for 18 months after your coverage ends. After 18 months, you will no longer be eligible for COBRA coverage.

If you are eligible for COBRA coverage, you should carefully consider whether or not to sign up for it. COBRA coverage can be a valuable source of health insurance coverage, but it is also more expensive than the health insurance coverage that was offered through your employer. You should weigh the costs and benefits of COBRA coverage before making a decision.

If you have any questions about COBRA coverage, you should contact your former employer or the health insurance company that provided your COBRA coverage.