Passed in the year 1986 by the Congress in United States, the Consolidated Omnibus Budget Reconciliation Act or COBRA as it is commonly known provides a number of health benefits to its users. According to this act, the Insurance coverage that would be generally terminated is continued over a long period of time. The COBRA was formed as a reform for the Internal Revenue Code and the Public Health Service Act.
COBRA a temporary retirement policy provides continuation of insurance cover to the spouses and dependent children of the employees and retirees of an organization. This insurance is a little more expensive than other types of group insurance policies and is available at group rates.
This type of insurance cover provides insurance cover to the organizations who provided insurance cover to its 20 or more employees in the previous year. The cover not only provides insurance to private sector employees, but to State and Central Government employees too. The COBRA is not applicable to certain insurance policies related to church or to Federal Government employees. These regulations provide insurance to the on the rolls employees of the employer and their dependents. Such organizations include trusts, and health maintenance organizations. COBRA Health Insurance is an excellent alternative to other health care plans.