What does COBRA stand for?

COBRA stands for the Consolidated Omnibus Budget Reconciliation Act. This federal law was enacted in 1985 and provides employees and their families with the right to continue their group health insurance benefits for a limited period under certain circumstances, such as job loss, reduction in work hours, or other life events. The purpose of COBRA is to ensure that individuals do not lose their health coverage during transitions in their employment status.

The emphasis of the law is on the continuation of health insurance coverage, allowing individuals to maintain a safety net during times of change. COBRA coverage can last 18 months or longer depending on specific qualifying events and circumstances, which underscores the importance of preserving access to necessary medical care after a job loss or other qualifying event.

While the other options listed provide similar-sounding acronyms, they do not refer to the actual legislation established for providing continued health insurance benefits. Understanding the accurate terminology and purpose of COBRA is crucial for anyone studying health and accident insurance practices, as it plays a significant role in the landscape of employee benefits.