Consolidated Omnibus Budget Reconciliation Act – COBRA

Frequently Asked Questions

COBRA stands for the Consolidated Omnibus Budget Reconciliation Act of 1985. Under COBRA, workers and their families must be offered continued health coverage when their regular health plans are discontinued due to such events as voluntary or involuntary termination or reduction of work hours, employee death or divorce (otherwise known as qualifying events). It is the responsibility of the employer to notify employees of their rights under COBRA or face financial and/or legal fines.