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COBRA

Shorthand for Consolidated Omnibus Budget Reconciliation Act of 1985. Under this federal law, former employees are granted temporary extension of their employer-sponsored health insurance coverage. Group coverage for COBRA participants is often more expensive than coverage for active employees, since COBRA participants pay for the full cost of the premium whereas the employer bears a part of the premium cost for active employees. Still, accessing coverage through COBRA is usually less expensive than purchasing individual health coverage.

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