COBRA
A federal law allowing workers to continue employer-sponsored health coverage temporarily after leaving a job or reducing hours.
Updated
COBRA (Consolidated Omnibus Budget Reconciliation Act) is a federal law that gives employees and their families the right to continue group health coverage for a limited time after a qualifying event such as job loss, reduced work hours, divorce, or death of the covered employee.
Under COBRA, the patient typically pays the full premium, including the portion previously paid by the employer, plus a permissible administrative fee.
In practice
When a patient elects COBRA, billing and eligibility teams verify continuation coverage and the active coverage dates before submitting claims. COBRA coverage must be in force on the date of service for the claim to process.
Commonly confused with
- Open Enrollment Period: COBRA continues existing employer coverage; Marketplace Open Enrollment offers individual coverage outside the employer group plan.