![]() ![]() It requires private insurers for employer-sponsored group health plans to keep job-based health coverage in place after qualifying events. The Act is a federal law that's been in place since 1986. A plan, however, may provide longer periods of coverage beyond the maximum period required by law. 'COBRA' stands for the Consolidated Omnibus Budget Reconciliation Act. The length of time depends on the type of qualifying event that gave rise to the COBRA rights. How long does COBRA coverage last?ĬOBRA requires for continuation coverage to extend from the date of the qualifying event for a limited period of 18 to 36 months. Part XIII of the law is also called the Revenue Reconciliation Act of 1993. It has also been unofficially referred to as the Deficit Reduction Act of 1993. Check with your state insurance commissioner’s office to see if such coverage is available to you. The Omnibus Budget Reconciliation Act of 1993 (or OBRA-93) was a federal law that was enacted by the 103rd United States Congress and signed into law by President Bill Clinton. In addition, many states have laws similar to COBRA, including those that apply to health insurers of employers with less than 20 employees (sometimes called mini-COBRA). The law does not apply to plans sponsored by the Federal Government or by churches and certain church-related organizations. The law generally applies to all group health plans maintained by private-sector employers with 20 or more employees, or by state or local governments. What group health plans are subject to COBRA? COBRA continuation coverage is often more expensive than the amount that active employees are required to pay for group health coverage, since the employer usually pays part of the cost of employees’ coverage and all of that cost can be charged to individuals receiving continuation coverage. What does COBRA do?ĬOBRA requires continuation coverage to be offered to covered employees, their spouses, former spouses, and dependent children when group health coverage would otherwise be lost due to certain specific events. If an individual elects insurance coverage, they continue to have the right to waive or change the election. ![]() The Consolidated Omnibus Budget Reconciliation Act (COBRA) health benefit provisions amend the Employee Retirement Income Security Act, the Internal Revenue Code and the Public Health Service Act to require group health plans to provide a temporary continuation of group health coverage that otherwise might be terminated. These 60 days are called the election period. In addition to the employees themselves, COBRA can also provide health coverage to spouses, former spouses, and dependent children.What is COBRA continuation health coverage? The Omnibus Budget Reconciliation Act of 1993 (or OBRA-93) was a federal law that was enacted by the 103rd United States Congress and signed into law by President Bill Clinton. Basically, COBRA allows them to stay on their employer's group health plan, albeit at a greater cost. The Consolidated Omnibus Budget Act (COBRA for short, or the COBRA Act as it is sometimes called, despite the redundancy) offers the continuation of medical coverage for workers who would otherwise lose their health insurance when they lose their employment. Understanding the Consolidated Omnibus Budget Reconciliation Act (COBRA)
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