Understanding COBRA – and how it works for you

Congratulations if you don’t know what COBRA is. That probably means you’ve never been fired from your job or laid off. Good news all around!

But if you’ve ever left a job involuntarily – and were horrified to discover the health insurance tied to the job was gone too – you’ve probably given COBRA some thought. COBRA helps reduce some of the financial vulnerability you have if you’ve suddenly lost your job and your health benefits.

COBRA lets you continue your employer-sponsored health insurance for yourself – and your dependents if they were on your health plan – when you lose your job.

And, your benefits don’t change – they stay the same as you had before you left your job.

Your employer is responsible for notifying you of your COBRA benefits. Be sure to read all the materials your employer provides, to make sure you understand your rights under COBRA.

What is COBRA?

COBRA is a benefit you’re entitled to, but may not understand.

COBRA stands for Consolidated Omnibus Budget Reconciliation Act. It’s a law passed by Congress in 1986 to provide continuation of group health insurance for Americans who qualify and have lost coverage because they’ve lost their jobs.

After you lose your job and your health insurance, your employer has two weeks to send you COBRA forms and inform you about costs and how long you're eligible for COBRA coverage.