Consolidated Omnibus Budget Reconciliation Act of 1985. A federal law that provides a vital bridge between health plans fo9r qualified workers, their spouses, and their dependent children when their health insurance might otherwise be cut off. COBRA is a safety net for families in the midst of crisis, such as unemployment, divorce, or death.

Under COBRA, if you voluntarily resign from a job or are terminated for any reason other than “gross misconduct” you are guaranteed the right to continue your employer’s group plan as individual or family health care coverage for up to 18 months as your own expense. In many cases, your spouse and dependent children are also eligible for COBRA coverage, sometimes for as long as three years. Individual plans, a plan that you buy for your self, not through your work place, is not subject to COBRA. The law grants certain exemptions to certain church-related organizations, firms employing fewer than 20 people, etc. Employers must figure part-time workers into their employee total to determine if they can claim exemption.

There are three types of groups/beneficiaries that are eligible for coverage: employee, their spouses, and their dependent children. You MUST actually be covered under an employer health plan to be eligible for COBRA.

A “qualifying event” must occur to trigger COBRA, you are then eligible to buy COBRA for the maximum coverage period as determined by your beneficiary status and the qualifying event. You do not have to stay on COBRA the entire time of your benefit period.

QUALIFYING EVENT	BENEFICIARY	MAX. COVERAGE PERIOD
Terminated	Employee	18 months
Reduced hours	Spouse, Dependent child
Divorce or legal separation Death of employee Employee entitled to Medicare
Loss of dependent-child status	Dependent child	36 months

When you reach the last day of maximum coverage, premiums not paid, you obtain other coverage or the employer ceases to maintain any group health plan.

Health Insurance Portability and Accountability Act of 1996. A federal law that protects health insurance coverage for workers and their families when they change or lose their jobs. This act guarantees that if you have had continuous health coverage, and meet certain other qualifications, cannot be denied insurance even if they have pre-existing conditions.

Require employers to offer or pay for health coverage.
Guarantee health coverage for all employees.
Eliminate all use of pre-existing condition exclusions.
Control the amount an insurer may charge for coverage.