What does 'COBRA' allow?

COBRA (Consolidated Omnibus Budget Reconciliation Act): Allows eligible employees and their dependents to CONTINUE their employer-sponsored GROUP HEALTH COVERAGE for a LIMITED TIME after they would otherwise lose it due to a QUALIFYING EVENT.

Qualifying events: Job loss (voluntary or involuntary, except gross misconduct); reduction in hours; divorce/legal separation; death of the covered employee; loss of dependent status.

Duration: Typically up to 18 months (sometimes 29 or 36 months depending on the event).

Cost: The individual usually pays the FULL premium (both the employee and former employer portions) plus a small administrative fee (up to 102%) — so it's expensive but maintains continuity; APPLIES to: employers with 20+ employees (smaller employers may have state 'mini-COBRA').

Purpose: Prevents gaps in coverage during transitions.

Alternative: ACA marketplace (job loss is a qualifying event for special enrollment); understanding COBRA (temporary continuation of group coverage after qualifying events, at the individual's full cost) is important health insurance exam content.