The U.S. federal law enacted in 1985 that gives eligible workers temporary continuation of employer health coverage after job loss is COBRA.
COBRA is short for the Consolidated Omnibus Budget Reconciliation Act of 1985. Its health-insurance provisions generally allow eligible employees, former employees, spouses, and dependents to continue group health-plan coverage after certain qualifying events, including job loss or reduced working hours.
The former worker usually pays the full premium, rather than receiving the employer subsidy, and may also pay a limited administrative fee. This can make COBRA coverage significantly more expensive than payroll deductions during employment, even though the underlying plan may remain the same.
COBRA is often confused with HIPAA, which includes health-privacy and portability provisions, and with ERISA, the broader federal law governing many employer benefit plans. COBRA continuation is temporary; it is not a permanent replacement for employer insurance or a separate public insurance program.