Cobra Insurance does not mean an insurance company offering insurance plans to individuals. Cobra is, in fact, an acronym stands for Consolidated Omnibus Budget Reconciliation Act (COBRA). It was established as a Law by the Congress of the United States of America in 1986. The main focus of the law was to provide health cover to the retired government employees. The law, Cobra Insurance, also affected changes in the already exiting health insurance plans of the US government for its employees. For example, Cobra Insurance modified or taken place of the Employee Retirement Income Security Act (ERISA), the Public Health Service Act and the Internal Revenue Code in the United States of America. 
 
The new law provided health benefits to the retired personnel by giving them continuation of health coverage under cobra health insurance to which they had no claim after retirement. It was now to be continued with a slight change of premium rates on the pattern of group insurance plans. Though under cobra health insurance one has to pay more than regular employees yet the premium rates are lower than the individual health insurance premium rates. The health coverage of Cobra health insurance is not limited to the retired employees only; it also includes health insurance benefits to the dependents, spouse and children of the retired employee. The time period for the employee’s relations is, however is limited. They cannot continue the Cobra health insurance premium benefits for good. Thus, it is termed as temporary insurance benefit. Cobra Insurance has gained much appreciation from all corners of society as it was quite troublesome for the retired employees to manage their health affairs after retirement. The previous laws related to the health insurance of the retired employees had no such facilities as Cobra Insurance provided. Though there are voices for further amendments yet the law since in inception in 1986 has benefited a considerable segment of population.

The application of Cobra Insurance differs, in some respects, for the employees of the federal government, who are already entitled for many other health benefits by their parent departments. Likewise, the employees of some non-governmental organizations, having government support are not entitled for the benefits of Cobra health insurance. In this regard, all church- related organizations can be name as an instance. Cobra Insurance maintains a comprehensive website for the guidance of the active and retired employees to know the benefits, they can get under COBRA.