COBRA

COBRA (Consolidated Omnibus Budget Reconciliation Act) is a US federal law from 1985 that gives employees and their dependents the right to temporarily continue their employer-sponsored group health insurance after losing coverage due to job loss, reduction in hours, or other qualifying events. Continuation typically lasts up to 18 months (up to 36 for certain events such as divorce or death of the covered employee), and applies to employers with 20 or more employees; many states extend similar rights to smaller employers through 'mini-COBRA' laws. The defining practical feature is cost: the individual pays the full premium — both the employee and the former employer share — plus a 2% administration fee, which makes COBRA coverage expensive and often a bridge solution until new employer coverage or a marketplace plan begins. For HR departments, COBRA is an administration and deadline discipline: qualifying events trigger strict notification timelines (the election notice must generally be sent within 14 days of the plan administrator learning of the event, and individuals have 60 days to elect), and notice failures carry statutory penalties and lawsuit exposure, which is why many employers outsource COBRA administration to specialized providers. COBRA knowledge is standard content in US HR onboarding and benefits training, and it appears in offboarding checklists — a routine element of the HR compliance curriculum delivered through learning platforms.