What does COBRA provide for employees?

COBRA, which stands for the Consolidated Omnibus Budget Reconciliation Act, provides the opportunity for employees to continue their health insurance coverage after leaving a job or experiencing a qualifying event, such as reduced work hours, layoffs, or other life events that would typically lead to the loss of coverage. This law ensures that employees and their families have a temporary extension of their health insurance benefits, ensuring they are protected during transitions when they might otherwise go without medical coverage.

The ability to maintain health insurance can significantly ease the financial burden associated with medical care during periods of unemployment or transition, making COBRA a crucial safety net for many workers. It typically allows for up to 18 months of continued coverage, sometimes longer for certain qualifying events, ensuring that individuals can manage their health needs without encountering gaps in coverage.