Consolidated Omnibus Budget Reconciliation Act (COBRA)

Definition from Nolo’s Plain-English Law Dictionary

A federal law that enables employees and their families to continue health care coverage under an employers group health plan even after they experience an event -- such as a layoff, termination, cut in hours, or divorce -- that would otherwise end their coverage. Employees and their families must pay the full premium, but they get to pay the employer-negotiated group rate, which is often less expensive than an individual rate. This continued coverage lasts for 18 to 36 months, depending on the event that made the employee eligible.

Definition provided by Nolo’s Plain-English Law Dictionary.