COBRA stands for the Consolidated Omnibus Reconciliation Act of 1985 enacted in 1986. Since its original enactment, COBRA has been modified numerous times by Congress. The Act provides terminated employees or those who lose coverage because of reduced work hours the ability to purchase group health coverage for them selves and their families for limited periods of time, ranging from 18 to 36 months. The law specifies rates, coverage qualifying events, eligible individuals, notification requirements and payment terms.