COBRA

The acronym COBRA refers to the Consolidated Omnibus Budget Reconciliation Act. COBRA is a federal law that states that health benefits are continued for employees who lose their jobs for specified reasons. Qualifying reasons for loss of coverage are either termination of employment for any reason other than misconduct, or a reduction in hours that changes the status from full to part time. If the employee loses their job or hours due to either of these reasons, they are qualified for COBRA benefits. Under COBRA, the medical or dental insurance must be made available to the employee at the moiré affordable group rate. This benefit is only available for a limited time.

COBRA was designed to allow people to quit jobs they were not happy with to pursue other employment, without losing their affordable medical and dental coverage. It also helps employees who are involved in downsizing reductions at their jobs while they look for new work.

More Terms Explained here