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The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers and their families who lose their employer-sponsored health benefits the right to continue group health coverage for limited periods of time under certain circumstances, such as a job loss, reduction in hours worked, death, divorce and other life events.
Most employer-sponsored group health plans are subject to COBRA’s continuation coverage requirements. However, some employers, such as churches and small employers, are exempt from COBRA. In addition, certain welfare benefit plans, such as long-term and short-term disability plans are not subject to COBRA because they do not provide medical care.
This Compliance Overview summarizes the rules for determining whether an employer or group plan must satisfy COBRA continuation coverage requirements.
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