What does COBRA stand for?

COBRA stands for the Consolidated Omnibus Budget Reconciliation Act. This legislation was enacted in 1985 and is important as it allows individuals who have lost their job or had their work hours reduced to continue their health insurance coverage for a limited period, typically up to 18 months, by paying the full premium. The act specifically addresses the need for continued health care coverage for employees and their families under certain conditions, helping to ease the transition during times of job loss or significant life changes.

The other choices do not accurately reflect the terminology or the purpose of COBRA and do not correspond to any recognized federal health care legislation. Understanding COBRA is crucial for navigating health insurance options during employment changes, highlighting its significance in maintaining continuous health insurance coverage.