What does the Consolidated Omnibus Budget Reconciliation Act (COBRA) provide for individuals?

The Consolidated Omnibus Budget Reconciliation Act (COBRA) provides individuals the opportunity to pay to continue their medical coverage under their employer's health insurance plan after experiencing certain qualifying events, such as job loss, reduction in work hours, or other life changes that would typically cause them to lose healthcare benefits. This continuation of coverage is essential as it allows individuals and their families to maintain access to healthcare during a period when they may otherwise face a gap in insurance coverage.

COBRA does not offer free healthcare coverage, nor does it guarantee enrollment in a new health plan. It also does not provide benefits after retirement without costs; instead, individuals are required to pay the full premium amount plus a small administrative fee. This law helps to ensure that employees and their dependents have a safety net regarding health insurance, thereby playing a crucial role in maintaining continuity of care during transitional periods.