The Consolidated Omnibus Budget Reconciliation Act (COBRA) established in 1986 is a federal law that allows employees when terminated, for any reason other than gross misconduct, to continue their health insurance coverage.
Benefits can typically be extended for 18 months or as long as 36 months in certain situations.
For the group to be eligible it must have 20 or more employees. If your employer does not meet this requirement, then state continuation laws will go into effect and may provide extended coverage after employment.
COBRA laws also apply to products such as dental or vision insurance.
The employee will be required to pay the full cost of the insurance and a two percent administration fee may be added to the COBRA premium.
Employers should have a basic understanding of COBRA. Many States have something call State Continuation. This will impact a company if they do not offer this service. Brokers that provide you the benefits can help you manage the service.