Employee Issue:

COBRA

The Consolidated Omnibus Budget Reconciliation Act (COBRA) offers workers and their families who lose their health benefits the right to choose to continue coverage provided by their group health plan for a limited period. COBRA applies under certain circumstances such as voluntary or involuntary jobs loss, transition between jobs, reduction in hours, divorce, death or other life events. Qualified individuals may be required to pay the entire premium coverage up to 102% of the cost of the plan. COBRA usually requires that employers with 20 or more employees in the prior year offer the chance for a temporary extension of health coverage.

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