The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) requires most employers with group health plans to offer employees the opportunity to continue, temporarily, their group health care coverage under their employer's plan if their coverage otherwise would cease due to termination, layoff, or other change in employment status (referred to as "qualifying events").

The COBRA law, though it affects insurance, is AN EMPLOYER LAW. The employer has certain responsibilities under COBRA and the EMPLOYER is liable for COBRA failures. There are financial penalties for not complying with COBRA law and there are several different entities that levy penalties for failure to comply with COBRA law.