What is COBRA insurance?

COBRA insurance refers to the Consolidated Omnibus Budget Reconciliation Act, which is a federal law that grants individuals the right to continue their group health insurance coverage for a limited time after they leave their job, reduced their work hours, or experience other qualifying events. This law is essential for employees and their families, as it allows them to maintain their health insurance benefits, ensuring they are protected and have access to necessary medical care during transitions that might otherwise leave them uninsured.

The coverage under COBRA is typically available for up to 18 months, but in certain situations, it can be extended to 36 months for dependents. Participants are often required to pay the full premium for the health insurance coverage plus a small administrative fee, which is different from the lower premiums usually paid while actively employed.

The other options refer to different types of programs or laws. One option describes Medicaid, which is unrelated to COBRA, while others mention private health insurance plans or state-specific programs for low-income families, which do not provide the same continuation of group health insurance coverage that COBRA facilitates. The importance of COBRA lies in its role in providing a safety net for those who might lose their job but still need continuity in health insurance coverage.