Friday, October 2, 2026

Question: Most Americans know COBRA as the way to keep your work health insurance after leaving a job. What does COBRA stand for? 

Answer: The Consolidated Omnibus Budget Reconciliation Act. President Ronald Reagan signed it into law in 1986. COBRA lets many workers keep their employer’s health plan after they leave a job, usually for up to 18 months. The catch is that the former employee usually pays the full cost of the plan, plus up to a 2% fee, since the employer no longer chips in.