COBRA (short for the Consolidated
Omnibus Budget Reconciliation Act
of 1985) provides a needed connection between
health plans for
qualified workers, their spouses, and their dependent
children when their health insurance might otherwise be cut
off.
COBRA has been hailed as an important safety
net for families going through a tragedy like
unemployment, divorce, or death.
When enrolled in COBRA, if you voluntarily
resign from a job or are terminated for any reason other
than "gross misconduct" you are guaranteed the right to
continue your former employer's group plan as individual or
family
health care coverage for up to 18 months at your own
expense. In many cases, your spouse and dependent children
are also eligible for COBRA coverage, sometimes for as long
as three years. However,
individual plans - that is, plans you buy on your own,
rather than through work or an association - are not subject
to COBRA law, and once you lose that coverage, you won't be
able to get an extension under COBRA.