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What is COBRA?
Home » Insurance » COBRA Insurance » What is COBRA?In 1986, Congress passed the Consolidated Omnibus Budget Reconciliation Act (COBRA) that established landmark health benefit provisions. This new law amended the Employee Retirement Income Security Act (ERISA), the Public Health Service Act and the Internal Revenue Code so that qualified applicants could receive continuation of their group health coverage instead of having it terminated.
COBRA includes many provisions that give qualified former employees, retirees, spouses and dependents the right to temporarily continue the health coverage at the group rate they were receiving at their previous employer. COBRA is only available, however, in special instances.
The COBRA law generally covers group health plans maintained by employers with 20 or more employees in the prior year. It applies to plans in the private sector and those sponsored by state and local governments. The law does not, however, apply to plans sponsored by the Federal government and certain church-related organizations.
Medical benefits provided under the terms of the plan and available to COBRA beneficiaries may include:
• Inpatient and outpatient hospital care
• Physician care
• Surgery and other major medical benefits
• Prescription drugs
• Any other medical benefits, such as dental and vision care
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