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Definition of 'Consolidated Omnibus Budget Reconciliation Act - COBRA'
A landmark federal law passed by Congress in 1986 that provides continuing coverage of group health benefits to employees and their families upon the occurrence of certain qualifying events where such coverage would otherwise be terminated. The qualifying events under which COBRA continuation health coverage can be extended include voluntary or involuntary job loss, reduction in hours worked, job transition, death, divorce and other life events. Group coverage under COBRA may be extended for a maximum of 18 months due to employment termination or reduction of hours worked, though coverage may be extended to 36 months under certain circumstances. COBRA covers health plans maintained by employers with more than 20 employees.
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