COBRA stands for Consolidated Omnibus Budget Reconciliation Act. 1985; which is a Federal Law that requires employers to offer a health insurance for employees after leaving employment.

This cover could involve others based on the following reasons such as divorce, separation, dependent status and death. This act is only available for organizations with more than 20 employees and private sector businesses and not. It does not apply to plans which are offered by the federal government. 

How long can an employee stay on COBRA Coverage?

In most cases, an individual can stay under the COBRA coverage for up to 18 months, as long as they pay their premiums. Individuals could qualify 11 months more if they are disabled when they become eligible or if they become disabled within the first 60 days of becoming eligible for COBRA. Individuals may be eligible for up to 36 months if they become eligible for Medicare within 18 months of their event. 

Advantages of COBRA

One of the main advantages is that spouses, former spouses, and dependent children can still opt-in to the former employer's health plan. Employees still receive a notice telling them to sign up even if they don’t.