BASIC COBRA
Frequently Asked Questions

What is the general purpose of the COBRA law?

Under normal circumstances, only active employees can participate in employers group health insurance plans. Prior to COBRA, when an employee left the company, they and any covered family members lost their health insurance as well, since the employee no longer fit the definition of an active employee. If the employee or a family member was ill, they would be unable to obtain insurance in the open market since they are already sick. Congress, in passing the COBRA law, remedied this situation by mandating employers simply stand at the back door of the business and offer the ex-employee and/or the covered dependents the opportunity to buy the employers health insurance back from the employer, even though the employee doesn't work there anymore. In this way, the sick employee or dependent stays insured in the private sector (your health plan) and off Medicaid, or other welfare benefit programs.