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Consolidated Omnibus Budget Reconciliation Act (COBRA)

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Definition: Federal law that continues health care benefits for employees whose employment has been terminated.

Employers are required to notify employees of these benefit continuation options, and, failure to do so can result in penalties and fines for the employer.

An act that allows workers and their families to continue their employer-sponsored health insurance for a certain amount of time after terminating employment.

COBRA imposes different restrictions on individuals who leave their jobs voluntarily versus involuntarily.

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