Definition: Often the cost, or part of the cost, of an individual's health insurance for himself and his family is paid by his employer. When something interrupts the insured person's connection to the employer, the federal government guarantees that person may obtain continued insurance coverage for a period of time after the interruption (the "qualifying event"). The period of time insurance may be extended through COBRA depends on which qualifying event caused the interruption.
There are a number of qualifying events that allow the patient to continue insurance coverage:
- death of the covered employee
- termination through a layoff, strike, resignation or medical leave
- divorce from the covered employee
- age, the child of a covered employee may become too old to be covered
The employer is not required to pay for coverage under COBRA. Continued payment of the premiums is the responsibility of the person who will maintain the coverage. The employer may require payment for the full amount of the premium, plus an administrative fee.
COBRA is administered by the U.S. Department of Labor and was originally passed into law in 1985.
