The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a federal law that allows employees and their families to continue their health insurance coverage for a limited period after certain qualifying events, such as job loss or reduction in hours. COBRA applies to employers with 20 or more employees and requires them to offer continued health coverage to eligible employees and their dependents.
COBRA coverage is generally more expensive than employer-sponsored health insurance, as the employee is responsible for paying the full cost of the premium, including the portion that was previously paid by the employer. However, COBRA can provide peace of mind and financial protection during a time of transition.