The Consolidated Omnibus Budget Reconciliation Act (COBRA) provides continuing health insurance coverage for employees (and their dependents) when an employee loses their job or has a reduction of work hours.
Cobra insurance rules state that when an employee loses coverage under their employer’s health insurance benefits they can continue to receive coverage through the employer’s health plan at the price of group rates, so long as the employee is willing to make the required payments themselves.
There are various qualifying events for COBRA insurance but in general employees qualify where they experience voluntary or involuntary job loss or suffer a decrease in their number of hours worked that results in them being no longer eligible for the employer’s health insurance coverage. Spouses of such employees can also qualify if their partner becomes entitled to Medicare, they are separated or divorced from them or they have died.
