"COBRA" stands for Consolidated Omnibus Budget Reconciliation Act of 1985.

COBRA is the federal health care continuation law. COBRA requires that if an employee or other "qualified beneficiary" loses employer-provided health coverage due to termination of employment or another specified "triggering event," the group health plan must offer continued health care coverage to the qualified beneficiary. The qualified beneficiary may be (and typically is) required to pay the full cost for the coverage.

COBRA coverage has limited duration. In most cases, the maximum COBRA period is 18 or 36 months from the date of the qualifying event.

FEDERAL COBRA effects groups of 20 OR MORE EMPLOYEES. Employee count includes all full and part time employees on the payroll.