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Get StartedCOBRA stands for Consolidated Omnibus Budget Reconciliation Act which was passed in 1986 to amend the Employee Retirement Income Security Act, the Internal Revenue Code and the Public Health Service Acts and provide continued group rate insurance to those who might lose the benefit under some conditions. Coverage may be extended to former employees, their spouses, former spouses, children and to retirees.
This type of coverage must be provided by employers who have 20 or more part or full time employees. Employers in this category are required to provide the benefit but not to pay any part of the premiums for the qualified beneficiaries. Those opting to take COBRA benefits pay the premiums themselves but at the group rate the employer pays. Costs are generally much higher than when the employer was contributing to the premiums, they are still significantly lower than paying premiums or individual coverage.
Numerous companies offer this type of insurance. If you are an employer seeking to offer this coverage to your employees and their dependents, you can review the potential providers at Business.com. Their listings, shown on the left, can help you locate a firm providing these services at prices that fall within your budget.
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