COBRA as it is commonly called, was enacted in 1986 and gives workers and their families who lose their health benefits the right to choose to continue group health benefits provided by their former employer. Before the program was expanded under February's stimulus bill, an employee who was fired or quit his or her job could elect to extend existing health insurance coverage for up to 18 months and would be required to pay 100 percent of the monthly premium to his or her former employer each month. The program is available to most displaced workers, with exceptions for egregious misconduct.

employers are now required to cover 65 percent of the premium for a former employee's health coverage participating in COBRA for up to 16 months