#shorts COBRA, which stands for Consolidated Omnibus Budget Reconciliation Act, is a federal law in the United States that allows individuals to continue their employer-sponsored health insurance coverage for a limited period of time after leaving their job, losing their job, or experiencing certain other qualifying events.
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When a person is employed, they often receive health insurance benefits through their employer's group health plan. If they leave their job or have their employment terminated, they would typically lose access to that health insurance coverage. However, COBRA provides a temporary continuation of that coverage.
Under COBRA, eligible individuals have the right to elect to continue their health insurance coverage under the same plan, although they usually have to pay the entire premium themselves. This can include the portion that was previously paid by the employer, along with an administrative fee. COBRA coverage can last for a certain period, typically up to 18 months, but it can be longer in some cases.
COBRA coverage is available for employees of companies with 20 or more employees, as well as their dependents. It is designed to provide a temporary safety net for individuals and families who would otherwise lose their health insurance coverage due to a qualifying event.
It's important to note that while COBRA can be a valuable option for maintaining health insurance coverage, it can be quite expensive since the individual is responsible for the entire premium. Therefore, individuals who are eligible for COBRA may also want to explore other health insurance options, such as individual health insurance plans or coverage through a spouse's employer-sponsored plan, to find a more affordable alternative.
