COBRA

Federal law generally requires employers with 20 or more employees who offer group health plans to offer employees, their spouses and their dependents continued health coverage following termination of their coverage under the group plan (so long as the plan itself continues).  This continued coverage was mandated by the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). In general, employers must offer continued coverage for a period of up to:

• 18 months for covered employees, as well as their spouses and dependents, when health plan coverage is lost due to termination of employment or a reduction of hours.
• 36 months for spouses and dependents who lose coverage due to divorce or legal separation, the employee's death, or certain other "qualifying events."