COBRA stands for the “Consolidated Omnibus Budget Reconciliation Act.” It is a federal law that requires group health plans with 20 or more employees to offer a continuation of coverage to employees who leave their jobs (voluntarily or involuntarily) and to their dependents. Coverage is also available to employees whose hours are reduced to the point that they are no longer full-time and thus ineligible for group health insurance. The employee must pay the premium for the coverage and can be charged an additional 2% for administrative costs. Eighteen months is normally the maximum length of coverage but may be extended due to disability. (See ERISA, HIPPA).