Final answer:
COBRA of 1985 allows an employee to continue their group health insurance coverage for a limited time after losing their job or experiencing a reduction in work hours, among other qualifying events. COBRA coverage requires the individual to pay the full premium, however.
Step-by-step explanation:
The Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 allows an employee to continue group health benefits provided by their group health plan for limited periods under certain circumstances such as voluntary or involuntary job loss, reduction in the hours worked, transition between jobs, death, divorce, and other life events. Specifically, COBRA gives workers who lose their health benefits the right to choose to continue health insurance coverage for themselves and their dependents for a limited period. COBRA coverage is often more expensive than the amount that active employees are required to pay for health coverage, as the employer usually pays part of the insurance premium while the employee works, which is not the case once COBRA is elected.