The federal government enacted the Consolidated Omnibus Budget Reconciliation Act (COBRA) to help people maintain their health insurance coverage when they changed jobs. COBRA requires employers with 20 or more employees to offer continued health insurance coverage to workers and their families for 18 months after the worker leaves the job. Employees pay the full premium, plus a 2% administrative fee. In some cases, employees may be able to extend their coverage for up to 36 months.
COBRA has helped millions of Americans maintain their health insurance coverage during periods of unemployment or transition.