What is COBRA in the context of health insurance?

COBRA, or the Consolidated Omnibus Budget Reconciliation Act, is a law that provides individuals with the right to continue their health insurance coverage for a limited period after leaving employment, experiencing a reduction in hours, or undergoing other qualifying events. This provision is especially important for those who would otherwise lose their health insurance due to changes in their employment status. Under COBRA, eligible employees and their families can maintain their group health insurance coverage, but they must pay the full premiums themselves, which may include the employer's portion.

This option is accurate because it captures the essence of COBRA's purpose, which is to ensure that individuals do not lapse in their health coverage when they transition out of jobs or face other life-changing circumstances. It also emphasizes the importance of continuity of care during potentially challenging times.