The Consolidated Omnibus Budget Reconciliation Act (COBRA) supports workers who have lost their right to health benefits so they can keep their employer-sponsored group health plan in place of work. The need for continuous insurance coverage is necessary when the coverage is interrupted due to loss of job, reduction of working hours, death of the insured employee, divorce or even other circumstances that affect the life of a person. A person who is entitled to group health benefits is usually expected to pay this premium. The employer can increase the premium by up to 102%, which is permitted under COBRA provisions. The law applies to all employer-sponsored group plans that have 20 or more employees and urges them to provide a temporary extension of health coverage (Magill, 2009). COBRA was passed in 1986 and provides guidelines for continued health coverage in the event of sudden job loss or even death, among other situations that cannot be avoided. Both employees and employers must participate in the program to make it effective. Employees are guided by the "Employee Benefits Security Administration" and the "Employee Retirement Income Security Act" to complete compliance forms. The law was designed to find temporary solutions for ongoing medical insurance so that the unemployed can continue to enjoy and access healthcare facilities despite financial hardships that may make them unable to support themselves and their families while they find a permanent solution (Magill, 2009).The “COBRA” organization is supported by the “Department of Health and Human Services”. The information below explains how the program works. Qualified Beneficiary Qualifying Event Coverage Period Emplo...... half of the document ......r the condition to be covered or the charging of extraordinary sums for premiums. The employee must not remain without coverage for more than 63 days to avoid pre-existing conditional provisions in a policy. In reality, the government should make Medicaid benefits available to the newly unemployed or low-wage workers because of their now “low-income” status. The reality is that even if the government made Medicaid benefits available, the state of the economy would cause many states to reduce Medicaid benefits for budgetary reasons. Works Cited Magill, N. (2009, January 12). Caught between unemployment benefits and healthcare costs. Retrieved January 18, 2012, from familiesusa: http://www.familiesusa.org/assets/pdfs/cobra-2009.pdfMcMillan, E.J. (2008). Template Policies and Procedures for Nonprofit Organizations. United States: John Wiley and Sons.