Define: Consolidated Omnibus Budget Reconciliation Act Of 1985

COBRA stands for the Consolidated Omnibus Budget Reconciliation Act of 1985. It is a federal law that allows employees and their dependents to continue their group health insurance coverage after leaving their job or experiencing a qualifying event.

Employees who work for employers with 20 or more employees and have group health insurance coverage are generally eligible for COBRA. Additionally, their dependents, such as spouses and children, may also be eligible.

A qualifying event is an event that causes an individual to lose their group health insurance coverage. Examples of qualifying events include termination of employment, reduction in work hours, divorce or legal separation, and the death of the covered employee.

COBRA coverage typically lasts for a maximum of 18 months for employees and their dependents. However, certain qualifying events, such as disability or the death of the covered employee, may extend the coverage period.

Yes, employers can charge up to 102% of the cost of the group health insurance premium for COBRA coverage. This additional 2% is meant to cover administrative costs.

In general, individuals who meet the eligibility criteria cannot be denied COBRA coverage. However, if the employer discontinues the group health insurance plan altogether, COBRA coverage may not be available.

No, COBRA coverage is limited to the same health insurance plan that the individual had while employed. However, once the COBRA coverage period ends, the individual may be eligible to enroll in a different health insurance plan.

COBRA coverage can be terminated if the individual fails to pay the required premiums on time or becomes eligible for another group health insurance plan. Additionally, coverage can be terminated if the employer discontinues the group health insurance plan altogether.

In certain circumstances, such as disability or a second qualifying event, an individual may be eligible for an extension of their COBRA coverage beyond the maximum period of 18 months.

Yes, there are alternatives to COBRA coverage, such as purchasing an individual health insurance plan or enrolling in a spouse’s employer-sponsored health insurance plan if eligible. Additionally, individuals may be eligible for government-sponsored health insurance programs like Medicaid or the Affordable Care Act marketplace.