|CHAPTER 4:||Financial Assistance Programs|
Consolidated Omnibus Budget Reconciliation Act (COBRA)
This law was enacted in 1986 to help workers and their families keep their group health coverage during times of voluntary or involuntary job loss, reduction in the hours worked, transition between jobs and in certain other cases.
COBRA provides workers who lose their health benefits the right to choose to continue group health benefits provided by the plan under certain circumstances.
Group health plans sponsored by employers with 20 or more employees in the prior year must offer employees and their families the opportunity for a temporary extension of health coverage, in certain instances where coverage under the plan would otherwise end.
Group health plans maintained by employers with 20 or more employees in the prior year.
Events That May Result In Rights For Coverage:
- Voluntary or involuntary termination for reasons other than gross misconduct.
- Reduced hours of work.
- Employee becomes entitled to Medicare.
- Divorce or legal separation of a covered employee.
- Death of a covered employee
- Loss of status as a dependent child under plan rules.
See "Contact" For Information On:
- Periods of Continuation
- Coverage, notification requirements, premium payments, and most frequently asked questions.
U.S. Department of Labor | Frances Perkins Building, 200 Constitution Ave., NW, Washington, DC 20210 | 866-275-7922, 877-889-5627 (TTY) | www.dol.gov/ebsa