COBRA is not an insurance policy, it’s a law. It stands for Consolidated Omnibus Budget Reconciliation Act and was passed in 1986 by the federal government to help those who have lost their jobs to get medical care. Beneficiaries still retain the health plan they had at their previous jobs subject to certain requirements. However, they are required to pay the full premium. The plan is available in all U.S. states and is open to those working in a company with more than 20 employees. To find out more about the Act, click here.