The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) signed into law on April 7, 1986. Congress created this law primarily to help individuals retain Group Health insurance when there was a break in Coverage due to such things as unemployment or changes in family status such as divorce.

COBRA is a law that employers must adhere to by offering continuation of group health benefits to individuals who lose coverage as a result of the following qualifying events.

Qualifying Events
Divorce
Legal Separation
Los of dependent child status
Medicare entitlement
Reduction in work hours
Termination of employment

Group Health Benefits Defined
Medical Insurance
Dental Insurance
Vision Insurance
Prescription Drug Programs
Health Flexible Spending Accounts and any self-insured arrangements that provide similar benefits.

COBRA requires employers to offer individuals who lose coverage as a result of a qualifying event the same coverage they had prior to the event. These individuals are called qualified beneficiaries and must be given essentially the same rights as active employees. If the active employees have the ability to change plans or benefits, add or delete dependents during open enrollment periods, qualified beneficiaries have the same rights.

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