Consolidated Omnibus Reconciliation Act (COBRA) of 1985

Under the Consolidated Omnibus Budget Reconciliation Act of 1985, if an employee terminates employment with the company, the employee is entitled to continue participating in the company’s group health plan for a prescribed period of time, usually 18 months. (In certain circumstances, such as an employee’s divorce or death, the length of coverage period may be longer for qualified dependents). COBRA coverage is not extended to employees terminated for gross misconduct. 

Source: Society for Human Resource Management

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