What does COBRA stand for in the context of health insurance continuation coverage?

COBRA stands for the Consolidated Omnibus Budget Reconciliation Act. This legislation was enacted in 1985 and allows individuals and families to continue their health insurance coverage for a limited period after experiencing certain qualifying events, such as job loss, reduction in work hours, or other life events that affect their health insurance status.

The act applies to group health plans maintained by employers with 20 or more employees and provides a critical safety net for individuals who might otherwise lose their healthcare coverage. Under COBRA, eligible individuals can temporarily maintain their health insurance benefits under the same terms and conditions as if they were still employed, but they may be required to pay the full premium plus a small administrative fee. This enables those facing transitions in their employment status to ensure continuity in healthcare access, which is vital for managing ongoing medical needs.

The other options do not reflect the actual content and intent of COBRA. They do not encompass the purpose of facilitating continued health insurance coverage for individuals who are transitioning out of employment or facing other qualifying situations.