TaxBandits Knowledge Base

What is COBRA health insurance?

COBRA is an acronym for the Consolidated Omnibus Budget Reconciliation Act, a federal law. Under the American Rescue Plan, the government introduced COBRA Premium Assistance Subsidy to provide a COBRA health insurance premium.

The COBRA health insurance requires specific employers to continue providing group health insurance to employees who are terminated from their services involuntarily, whose working hours are reduced, etc. In addition to employees, employers should provide insurance to qualified dependents for up to 36 months. 

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