Which act provides an option for extended health coverage to terminated employees?

The correct answer is COBRA of 1986, which stands for the Consolidated Omnibus Budget Reconciliation Act. This legislation is significant because it allows employees who have been terminated or experienced reductions in work hours to continue their health insurance coverage for a limited period under their previous employer’s group health plan. COBRA ensures that these individuals do not lose health coverage during times of transition, which can be particularly important in managing their health needs as they seek new employment or adjust to changes in their circumstances.

The provisions of COBRA apply specifically to employers with 20 or more employees and require that eligible individuals be offered the option to maintain their health insurance for up to 18 months after termination or reduction in hours, with some instances allowing for extensions. This act was designed to bridge the gap in health coverage, providing security to those facing job loss.

Other acts listed address different areas of employees' rights and protections; for example, the Americans with Disabilities Act pertains to disability rights in the workplace, and the Equal Pay Act focuses on wage equality between men and women. The Immigration Reform and Control Act deals with the conditions and requirements for employment based on immigration status. None of these acts provide for health insurance continuation after employment termination as COBRA does.