COBRA stands for Consolidated Omnibus Budget Reconciliation Act which was enacted in 1985. Employer groups who have had 20 or more full-time employees for more than 50% of the preceding calendar year are subject to COBRA. This bill allows employees who were insured on a group health plan the ability to continue coverage on the health plan for 18 months. Dependents who were covered on a group health plan can stay on cobra for 36 months. The COBRA legislation can be complicated. Employers who are subject COBRA should consider contacting a COBRA administration company. State continuation is for groups of 2-19. Each state can have different rules regarding State continuation. In most cases, State continuation allows employees to continue coverage for 6 to 9 months.