Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA)

Definition

A federal act that provides qualifying employees and employees’ family members the right to extend their employer-covered health insurance after they would otherwise lose coverage through loss of employment (e.g., termination or retirement) or change in spouse or dependent status (e.g., divorce, a child turning 26 years old, or death of the employee). COBRA’s insurance-coverage extension lasts up to either 18 months or 36 months depending on the life event, and it guarantees the same insurance that the person had, but the insured person must pay the entire premium, including the portion previously covered by the employer.