COBRA legislation was passed in 1985 to give employees health insurance portability in the event of a job change or layoffs. Prior to COBRA, the threat of losing your health insurance was a major deciding factor when considering a job change and for many people, it was to serious a threat to go through with a career change. Not now, thanks to COBRA, now any departing employee can extend their group health insurance coverage for up to 18 months while they seek alternative health insurance or new employment. The only problem is that the employee is responsible for the entire health insurance premium under COBRA. Without an employer contribution, that can be a significant sum of money.

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