INSURANCE 101: Omnibus Budget Reconciliation Act (OBRA)

Enacted in 1989, the Omnibus Budget Reconciliation Act, also referred to as OBRA, extends COBRA continuation benefits from 18 months to 29 months for disabled employees at the time of the qualifying event or who become disabled during the first 60 days of COBRA coverage who do not already qualify for 36 months under COBRA.

The Omnibus Budget Reconciliation Act (OBRA) also clarified Medicare as an ‘entitlement’ program which allows eligible Medicare recipients to sign up for Medicare coverage before becoming disqualified and thus losing continuing health coverage through COBRA or OBRA.