COBRA is a federal law that requires organizations with 20 or more employees to offer the continuation of group health benefits (Medical, Dental, Vision and Medical Reimbursement Account) to employees and covered dependents upon experiencing a "qualifying event." Qualifying events include termination of employment; reduction in hours; employee’s death; employee’s divorce; Medicare entitlement and change in dependent status.

Employers are required to provide initial COBRA notification to covered employees and dependents, a letter detailing an individual's rights upon experiencing a qualifying event, and an explanation of the conversion privilege.