Consolidated Omnibus Budget Reconciliation Act (COBRA) became effective in 1986.  COBRA amended both the Internal Revenue Code (IRC) and the Employee Retirement Income Security Ace (ERISA) with regard to employer health insurance obligations.  Since then, COBRA has been an active piece of legislation and has been amended numerous times.  The Department of Labor (DOL) issued their Final COBRA Regulations on May 26, 2004 and all employers governed by COBRA must comply on after November 26, 2004 or on January 1, 2005 for all with calendar plan years.

COBRA requires ALL employers (except churches and federal government) with 20 or more common law employees with a group insurance plan to provide eligible employee and their dependents with specified continued health coverage at group rates following their termination or loss of coverage.

More importantly, COBRA places the burden of compliance on the EMPLOYER and NOT on the insurance company.