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The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers, and their families who lose their health benefits, the right to choose to continue group health benefits provided by their group health plan for limited periods of time under certain circumstances, such as voluntary or involuntary job loss, reduction in the hours worked, transition between jobs, death, divorce, and other life events. Qualified individuals may be required to pay the entire premium for coverage up to 102 percent of the cost to the plan. COBRA generally requires that group health plans sponsored by employers with 20 or more employees in the prior calendar year offer their employees and their families the opportunity for a temporary extension of health coverage in certain instances where coverage under the plan would otherwise end.
Get the DOL’s An Employers Guide to Group Health Continuation of Coverage Under COBRA.