FOLIO Ontology

A COBRA claim is a legal action initiated by a former employee against their former employer for not complying with the U.S. law called the Consolidated Omnibus Budget Reconciliation Act (COBRA). COBRA requires employers with 20 or more employees to offer certain terminated employees and their eligible dependents the opportunity to continue their group health insurance coverage for a limited time after their employment ends. The claim typically arises when an employer does not comply with applicable COBRA requirements, which can result in the loss of health insurance coverage for the affected individual and their dependents. Employers can face liability for violating COBRA, which can result in significant damages for the affected individual.