What is COBRA coverage?

COBRA coverage refers to the Consolidated Omnibus Budget Reconciliation Act, which is a federal law that allows individuals to continue their group health insurance coverage for a limited time after leaving their job, experiencing a reduction in hours, or facing certain other life events. This law was created to help people maintain access to health insurance when they might otherwise lose it due to employment changes.

Under COBRA, eligible individuals can keep their employer-sponsored health insurance for up to 18 months, and in some circumstances, up to 36 months. While the coverage is beneficial in providing continuity of care, it is important to note that individuals are typically responsible for paying the full premium themselves, which can be a significant cost.

This legal provision is essential for those who may have ongoing medical needs or require time to transition to a new employment situation with health benefits. The other options listed do not pertain to COBRA; they relate to different types of insurance or specific demographics that COBRA does not uniquely serve.