The Consolidated Omnibus Budget Reconciliation Act, also known as COBRA, is a health provisions policy that was enacted in 1986. This law was passed during the Ronald Reagan administration. COBRA provisions include several changes to the Employee Retirement Income Security Act of 1974 (ERISA).

COBRA benefits give former employees and their immediate families the right to enjoy continuous medical insurance and health coverage offered by their companies even after termination.

COBRA only covers an initial insurance premium plan that has 20 or more employees working at least half of the year at the time of termination. This includes both full and part-time workers.

Cobra health coverage and COBRA medical insurance give terminated employees ample time to be protected until they are able to get another insurance coverage. With COBRA insurance policies, the retrenched beneficiary and their families can get the following COBRA benefits:

• Inpatient and outpatient hospital care;
• Physician care;
• Surgery and other major medical benefits;
• Prescription drugs;
• Any other medical benefits, such as dental and vision care

Apart from former employees and retirees, the employee’s spouse, the employee’s dependent child/ children, and any child born to or placed for adoption with a covered employee during the period of COBRA coverage can be deemed a legitimate beneficiary the COBRA medical insurance.