What option does COBRA provide for individuals who leave their job?

COBRA, which stands for the Consolidated Omnibus Budget Reconciliation Act, offers individuals who leave their job the option to continue their employer-sponsored health insurance for a limited time. This provision is significant because it allows individuals and their families to maintain their health insurance coverage during a transition period, such as when they are seeking new employment or experiencing a life change.

The coverage under COBRA typically lasts for 18 to 36 months, depending on the circumstances surrounding the employee's departure. It is important to note that while COBRA allows for the continuation of the same health insurance plan, the individual is responsible for paying the full premium, which can include both the employee's and employer's contributions, as well as a small administrative fee.

This benefit is essential for maintaining continuity in healthcare, ensuring that individuals do not have lapses in coverage, which could result in gaps in medical care or increased healthcare costs. The options addressing immediate access to new insurance coverage, supplemental coverage for pre-existing conditions, or free coverage do not accurately reflect the provisions of COBRA and its purpose.