 the consolidated omnibus budget reconciliation act of 1985 (or cobra) is a law passed by the u.s. congress on a reconciliation basis and signed by president ronald reagan that, among other things, mandates an insurance program giving some employees the ability to continue health insurance coverage after leaving employment. cobra includes amendments to the employee retirement income security act of 1974 (erisa). the law deals with a great variety of subjects, such as tobacco price supports, railroads, private pension plans, emergency room treatment, disability insurance, and the postal service, but it is perhaps best known for title x, which amends the internal revenue code and the public health service act to deny income tax deductions to employers (generally those with 20 or more full-time equivalent employees) for contributions to a group health plan unless such plan meets certain continuing coverage requirements. the violation for failing to meet those criteria was subsequently changed to an excise tax. although this statute became law on april 7, 1986, its official name is the consolidated omnibus budget reconciliation act of 1985 (, ). because of the discrepancy between the official name of the act and the year in which it was enacted,discrepancies between the date in the official title of a u.s. budget act and the date on which the act was signed into law occur with some frequency. see, for example, the deficit reduction act of 2005, signed into law in february 2006. some government publications refer to the act as the consolidated omnibus budget reconciliation act of 1986. the act is often referred to simply as "cobra". ==provisions== as originally enacted, title x of the act provided that a qualifying employer will not be permitted to take a tax deduction for its health insurance costs unless its health insurance plan allows employees of the employer and the employee's immediate family members who had been covered by a health care plan to maintain their coverage if a "qualifying event" causes them to lose coverage. however, the legislation was subsequently amended to instead impose an excise tax upon an employer whose health plan fails to satisfy the applicable rules. a qualifying employer is generally an employer with 20 or more full-time-equivalent employees.{{efn|erisa cites "(more) than 20 employees on a typical business day during the preceding calendar year".omnibus budget reconciliation act of 1989 all employees must be counted, even employees who have voluntarily waived group health coverage or who are not eligible for group health coverage due to part-time status. employees who work less than fu
1986_in_law Presidency_of_Ronald_Reagan United_States_federal_appropriations_legislation United_States_federal_health_legislation United_States_federal_taxation_legislation