What is COBRA coverage?

Written by: Billy Strawter Jr

COBRA is an acronym for the federal law, the Consolidated Omnibus Budget Reconciliation Act of 1985. It applies to most businesses that have twenty or more employees on an average business day for that company in the prior calendar year. (Some states have similar laws for smaller employers.)

The law is designed to allow eligible employees and/or their covered dependents to continue certain health-related group benefits when coverage is lost for a number of reasons.

Note: The law does not require that COBRA coverage be made available if an employee is terminated for “gross misconduct.”

To see when COBRA coverage is available, see the answer to the question:

What are the Qualifying Events that make one eligible for COBRA?

Depending on the circumstances, the coverage may be kept for up to 18, 29 or36 months (or potentially even for life for certain retirees of bankrupt companies) under federal law; state law may expand benefits in some cases.

For more detailed information on how long COBRA may be kept, see the answer to the question:

How long may I keep COBRA coverage?

About the author

Billy Strawter Jr wrote 132 articles on this blog.

My name is BJ Strawter. My grown up name is Billy. Which means everyone calls me Bill. I am an entrepreneur. My first business was a dance club. Next to a police station. First lesson on the importance of location in business.

Tags: , ,

 

Search

 
 
h divider
 

Michigan Health Insurance | Michigan Family Health Insurance | Michigan Health Insurance Quotes | Group Health Insurance | Low Cost Health Insurance Michigan | MI Healthcare Plans | Health Insurance in Michigan | Medical Insurance in Michigan | Health Savings Account Michigan | Affordable Michigan Health Insurance | Low Cost Health Insurance Michigan | Michigan Small Business Health Insurance