What is COBRA and what coverage does it provide?

COBRA (Consolidated Omnibus Budget Reconciliation Act of 1985) is a federal law allowing employees who lose group health coverage from an employer with 20+ employees to continue the same coverage temporarily by paying the full premium (employee + employer share) plus up to a 2% administrative fee. Coverage continuation periods: 18 months for most qualifying events (termination, reduction in hours); 29 months if the qualified beneficiary is disabled; 36 months for qualifying events like divorce or a dependent aging out. COBRA is expensive because the former employee bears the full cost without employer subsidy, but it provides continuity for those between jobs, awaiting Medicare eligibility, or with pre-existing conditions. State 'mini-COBRA' laws may extend coverage to smaller employers. ACA marketplace coverage often becomes the more affordable alternative to COBRA.