What does COBRA allow former employees and their dependents to do?

COBRA, which stands for the Consolidated Omnibus Budget Reconciliation Act, allows former employees and their dependents to continue their group health insurance coverage for a limited time after they experience a qualifying event, such as job loss, a reduction in work hours, or other specific circumstances. This law was enacted to ensure that individuals and their families do not lose their health insurance benefits during a transition period.

Under COBRA, individuals can maintain the same health insurance plan they had while employed, but typically they must pay the full premium themselves, including the portion previously covered by the employer. This continuation of coverage can last for up to 18 months, and in some cases, up to 36 months, depending on the circumstances.

The options regarding obtaining new insurance, transferring insurance to a family member, or accessing state-sponsored healthcare do not accurately describe the primary function of COBRA. Instead, COBRA specifically addresses the continuation of existing group health benefits, emphasizing the importance of maintaining access to necessary medical care during periods of employment transition.