What does the acronym COBRA stand for in relation to health insurance coverage?

The acronym COBRA stands for the Consolidated Omnibus Budget Reconciliation Act. This federal law was enacted in 1985 to provide individuals and their families the option to continue medical coverage when faced with job loss, reduction in work hours, or other qualifying events that would otherwise terminate their health insurance. COBRA mandates that employers with group health plans must allow employees and their dependents to retain their health benefits for a limited period, typically ranging from 18 to 36 months, under certain conditions. This is vital for maintaining health insurance coverage during transitions that could otherwise leave individuals uninsured.

The other options do not correspond with the well-established regulations or concepts associated with health insurance. Each of the alternatives presents fictitious names that do not reflect any actual legislation or regulation related to health insurance coverage. Understanding COBRA is crucial for individuals navigating employment changes and for employers who need to comply with federal health insurance mandates.