COBRA Definition

COBRA, or the Consolidated Omnibus Budget Reconciliation Act, is a federal law that requires employers to offer extended group health insurance to employees and their beneficiaries if they lose coverage.

COBRA Extended Definition
COBRA provides continuation health coverage to eligible employees, their dependents, and covered spouses if they become ineligible for the business-provided health plan.

Employers who provide health plans to employees and employ at least 20 full-time equivalent employees must provide COBRA continuation coverage.

COBRA regulates when employers must provide coverage, employee eligibility, and the length of coverage.

Qualifying events for COBRA coverage include:

  • Employee termination or hour reduction
  • Death of the employee
  • Divorce or legal separation of employee

Related Articles
COBRA Health Insurance—Do You Need to Offer It?
Continuation of Health Coverage (COBRA)

Last Updated By

Rachel Blakely-Gray | Feb 15, 2023

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