COBRA stands for the Consolidated Omnibus Budget Reconciliation Act, which is a federal law that allows eligible employees and their dependents to continue their health insurance coverage after leaving a job or experiencing certain life events, such as a reduction in work hours or a divorce.
Generally, COBRA applies to group health plans maintained by employers that had at least 20 employees working on more than 50 percent of their typical business days in the previous calendar year.
For more information, see the U.S. Department of Labor FAQ about COBRA.