On April 7, 1986, a federal law called the Consolidated Omnibus Budget Reconciliation Act (COBRA) was enacted requiring employers sponsoring group health plans to offer employees and their families the opportunity for a temporary extension of health coverage at group rates in certain instances where coverage under the plan would otherwise end. COBRA participants pay premiums according to the following formulae: For 18 months, pay the total premium (Employer and Employee portions) + 2%; for 19-29 months of disability (until eligible for Medicare), pay the Total Premium + 50%. Human Resources sends out a notification to employees and/or eligible dependents.

More information on Extended Coverage and ARRA (American Renewal and Reinvestment Act 2009) Premium Assistance Eligibility and Duration of Premium Reduction can be found