About COBRA COBRA is short for Consolidated Omnibus Budget Reconciliation Act: a federal law under which group health plans sponsored by employers with 20 or more employees must offer continuation of coverage to employees who leave their jobs, and their dependents. Coverage may be continued for up to 18 months if the insured person terminates employment or is no longer eligible. Coverage may be continued for up to 36 months in nearly all other cases, such as loss of dependent eligibility because of death of the enrolled person, divorce, or attainment of the limiting age. While the employee is guaranteed coverage if leaving a company of 20 plus employees, it is up to the employee to pay the entire premium as well as any administrative costs that can be attached to these costs. Individuals Employers Get a Quote