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

The Consolidated Omnibus Budget Reconciliation Act (COBRA) specifically provides for the continuation of group health coverage for employees and their dependents after certain qualifying events, such as job loss, reduction in work hours, transition between jobs, death, or divorce. This act ensures that individuals can maintain their group health insurance for a limited period, typically up to 18 months or longer in specific circumstances, by allowing them to pay for the coverage they would have received as active employees.

This continuation of coverage is crucial as it helps bridge the gap during times of transition, allowing individuals to retain their health coverage without experiencing a lapse in benefits. COBRA is especially important because losing health insurance can have significant financial implications, and maintaining coverage helps individuals access necessary medical care during challenging times.