Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA)

COBRA is an amendment to the Employee Retirement Income Security Act (ERISA) which obligates employers to offer employees who would lose their health coverage because of separation from employment or other reasons an opportunity to continue their coverage for at least 18 months.

Premiums are set at just over the employer's cost of providing the coverage.

Family members who lose coverage because of the employee's loss of coverage are also covered under the Act. The Act is enforced by the DOL and private lawsuits.

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