[Sal Santamaura]

For those who don't know, COBRA is a federal law which allows continuation of insurance for a period of time after someone leaves a job for any reason. The former employee takes over the premiums, plus as much as 10% for administrative costs.

The Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1986 that mandated separated employees whose employers had been providing medical coverage be offered continued participation for up to 18 months -- 36 months in certain cases -- limited the administrative surcharge to 2%, not 10%.