What does the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 allow an employee to do?

The Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 is designed to protect employees and their families from losing their group health insurance coverage when they experience certain qualifying events, such as job loss or reduction in hours that would otherwise make them ineligible for coverage. Under COBRA, eligible employees can continue to receive their group health insurance benefits for a limited period, provided they pay the premiums for that coverage.

This provision is significant because it allows individuals to maintain access to health insurance during transitional periods, preventing gaps in coverage that could be detrimental to their health and well-being. The requirement to pay premiums ensures that the continuation of benefits is sustainable, as the employer may no longer be subsidizing the cost after the employee's termination.

The other options do not accurately reflect the provisions of COBRA. Transfer of benefits to a new employer, accessing life insurance during unemployment, or applying for state health programs are not covered under COBRA, which specifically pertains to the extension of group health insurance coverage rather than these other benefits.