What is COBRA health insurance?

Understanding COBRA health insurance coverage

If you leave your job, you may no longer be eligible for your past employer’s individual health insurance or family health insurance plans. COBRA health insurance, or Consolidated Omnibus and Budget Reconciliation Act of 1985, is a temporary health insurance, allowing you to continue with the same health insurance policy for a specified amount of time.

The COBRA health insurance law applies to anyone who works for a business with more than 20 employees. If the group health insurance was through your spouse’s job, but you are now widowed or divorced, you can sign up for COBRA health insurance. For 18 months after graduation students, no longer covered by student health insurance, may also purchase COBRA health insurance.

Keep in mind that in order to keep your health insurance policy, you will have to pay the health insurance costs, also called health insurance premiums. You will no longer be eligible for the same health insurance rates as provided by your employer’s group health insurance.

Visit COBRA FAQs for more information.