Consolidated Omnibus Budget Reconciliation Act Of 1985
What Does Consolidated Omnibus Budget Reconciliation Act Of 1985 Mean?
The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) was passed by the U.S. Congress on a reconciliation basis and signed into law by President Ronald Reagan. One of its key provisions is the requirement that group insurance programs allow certain policyholders to continue their health insurance coverage after leaving their jobs.
Insuranceopedia Explains Consolidated Omnibus Budget Reconciliation Act Of 1985
COBRA introduced amendments to the Employee Retirement Income Security Act of 1974 (ERISA) and addresses various topics, including pensions, emergency room coverage, and disability insurance. The COBRA statute became law on April 7, 1986.
Under COBRA, individuals covered by one policy may also obtain coverage from another group health plan or through Medicare if specific conditions are met. Additionally, qualifying employers cannot take a tax deduction for associated health insurance costs unless their health insurance plan allows employees and their immediate family members to continue coverage if it is lost due to a qualifying event.
