What is COBRA? Does it apply to nonprofit organizations?
The federal Consolidated Omnibus Budget Reconciliation Act (COBRA) provides eligible employees and their family members the right to continue health care coverage under their employer’s group health plans. The right to continue such coverage arises when specific events (such as resignation, termination or death of an employee, or a reduction in an employee’s hours) occur that would normally result in the loss of coverage. COBRA’s provisions apply equally to nonprofit organizations and for-profit businesses. COBRA applies to group health plans, including any plan sponsored by an employer that provides medical care to employees, former employees or their families, regardless of whether benefits under the plan are provided directly by the employer or through insurance, reimbursement, an on-site facility, a cafeteria plan or some other manner. Dental, vision care, hearing, drug and alcohol treatment, and other medical benefits are also covered by the COBRA rules. Employers exempt from COBR
