What is a COBRA plan?

COBRA stands for the Consolidated Omnibus Budget Reconciliation Act, a law passed in 1986 that applies to companies with 20 or more employees. Under COBRA, employees and their families have the right to continue their health insurance coverage after they lose or leave their positions. This is especially important for those ineligible for other coverage, such as those with pre-existing conditions. In California, employers must offer COBRA coverage to employees who are leaving their jobs and their families, as long as they had health insurance through the employer before they left or lost their job. With COBRA, employees may continue their health insurance coverage for up to 18 months and coverage for their family members for up to 36 months. COBRA is an important option for those who might otherwise not be eligible for health insurance. It provides a way to maintain coverage and access to health care without interruption. COBRA can be expensive, however, as the employee is responsible for the full cost of the premium plus a small administrative fee. Luckily, there are usually subsidies available for those who qualify, which can help make the coverage more affordable.

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What is a COBRA plan?

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