COBRA

Consolidated Omnibus Budget Reconciliation Act

US law letting departing employees continue employer health coverage at their own cost for a limited period.

When you'd see it: When someone leaves a US job and has to decide how to keep their health insurance.

Why it matters: COBRA lets a former employee keep their employer health plan for a limited window, but they now pay the full premium the employer used to subsidize. That is why COBRA coverage feels shockingly expensive.

Common mistakes: Assuming COBRA is cheap. The coverage is identical, but the person now pays the entire cost, often several times the old paycheck deduction.