What is the Consolidated Omnibus Budget Reconciliation Act (COBRA)?
COBRA is a federal law that serves two purposes. First, it can extend health care coverage for 18 months past the end of employment if an individual has had medical coverage with an employer. Second, it can help you qualify for a private health care policy. For example, if an individual stays on COBRA until it runs out, you cannot be turned down for a private health care policy. The individual must purchase the private policy within 180 days from the date that COBRA runs out. If the individual obtains group insurance with a new employer, the new employer cannot charge the individual higher-than-standard prices, even if there is a long-term health problem.
