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What is COBRA?

COBRA is an acronym for Consolidated Omnibus Budget Reconciliation Act. The main purpose of COBRA was to require employers maintaining group health plans to offer employees and their dependents the opportunity to continue their coverage in cases where they would otherwise lose coverage because of certain events.

The following table shows COBRA qualifying events and associated benefits coverage time frames:

EVENT BENEFICIARY DURATION 
Termination of employment or Reduction in hours of the Covered Employee Covered Employee
Spouse (of Covered Employee)
Dependent Children (of Covered Employee)
 18 Months
Termination of employment or Reduction in hours of the Covered Employee, with a Social Security disability determination Covered Employee
Spouse (of Covered Employee)
Dependent Children (of Covered Employee)
29 Months
  • Death of Covered Employee
  • Divorce or Legal Separation of the Covered Employee & Spouse
  • Employee Entitlement to Medicare
Spouse (of Covered Employee)
Dependent Children (of Covered Employee)
36 Months
Loss of Dependent Status Dependent Children (of Covered Employee) 36 months
Bankruptcy Proceeding of the Employer Retiree
Surviving Spouse
Spouse of Retiree
Dependent Child
Lifetime
Until the retiree dies, plus up to 36 months

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