Short answer: COBRA allows certain employees, spouses, and dependents to continue their employer-sponsored group health coverage after a qualifying event causes a loss of coverage, as long as the employer is subject to COBRA.
COBRA is a federal law—the Consolidated Omnibus Budget Reconciliation Act—that requires certain employers to offer temporary continuation of group health coverage when coverage would otherwise end due to a qualifying event.
COBRA generally applies to private-sector employers and state or local governments that employed 20 or more employees on more than 50 percent of typical business days in the prior calendar year and that sponsor a group health plan. Churches and the federal government are generally exempt, although federal employees have separate continuation coverage rules.
Individuals who may qualify for COBRA coverage are known as qualified beneficiaries. This can include employees who lose coverage due to a termination of employment (voluntary or involuntary, other than for gross misconduct) or a reduction in hours. It can also include spouses and dependent children who lose coverage due to events such as divorce or legal separation, the death of the covered employee, or a dependent child losing eligibility under the plan.
To qualify, the individual must have been covered under the group health plan on the day before the qualifying event, and the event must result in an actual loss of coverage. COBRA coverage is not automatic—qualified beneficiaries must be notified of their rights, elect coverage within the required timeframe, and pay the full premium for the coverage.
Sources
-
U.S. Department of Labor, FAQs on COBRA Continuation Health Coverage:
https://www.dol.gov/agencies/ebsa/laws-and-regulations/laws/cobra -
U.S. Department of Labor, An Employer’s Guide to Group Health Continuation Coverage Under COBRA (Who Is Covered; Qualified Beneficiaries):
https://www.dol.gov/sites/dolgov/files/EBSA/about-ebsa/our-activities/resource-center/publications/an-employers-guide-to-group-health-continuation-coverage-under-cobra.pdf
Content history
Originally published: March 27, 2025
Last reviewed: January 24, 2026