The federal law that lets many employees continue employer-sponsored health coverage after leaving a job is COBRA.
COBRA is the common name for the continuation-coverage provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985. It generally applies to employer health plans with at least 20 employees and can cover workers, spouses, former spouses, and dependent children after qualifying events such as job loss, reduced work hours, divorce, or a worker's death.
COBRA does not usually make coverage free. The former participant may have to pay the full plan premium plus an administrative charge, which can make it more expensive than payroll deductions while employed. Coverage is also temporary, commonly lasting 18 months, though extensions can apply in some situations.
COBRA is often confused with the Affordable Care Act, or ACA. The ACA created marketplaces and other reforms; it did not create COBRA. ERISA governs many employee-benefit plans, while HIPAA addresses health-information privacy and portability rules.