The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a federal law that gives workers and their families the right to continue their health insurance coverage provided by their employer for a limited time after certain qualifying events, such as job loss, reduction in hours, or a divorce. COBRA coverage is not free, but it allows employees to continue their health insurance at group rates, which are typically lower than individual rates.
To apply for COBRA benefits, you must notify your employer of your qualifying event within 60 days of the event. Your employer will then provide you with a COBRA election form, which you must complete and return to your employer within 60 days of receiving it. You will also need to pay the first COBRA premium payment within 45 days of receiving the election form.