Introduction to COBRA
COBRA stands for the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985, a bill that was passed in 1986, and it amends the Employee Retirement Income Security Act (ERISA), the IRS Code and the Public Health Service Act. So, what does COBRA do? Well, it requires that a group health plan must offer every qualified person the opportunity to continue the same coverage they had while an employee or a dependent, after they cease to become one. In most instances, it gives an employee that has been terminated or has voluntarily resigned, the opportunity to continue their existing level of medical coverage.
The actual scope of individuals that are covered is quite broad because COBRA also applies to dependents of employees as well, which can included spouses, children, etc.; and the but the cost will usually be much higher. The reason for this difference is price is because your employer will no longer be paying part of the premium, that financial burden falls entirely on the insured.
In the remainder of this site, I will discuss to you the various details of COBRA plans that may be of interest.