What is the primary purpose of COBRA?

The primary purpose of COBRA, which stands for the Consolidated Omnibus Budget Reconciliation Act, is to allow individuals to continue health insurance coverage after they have experienced a qualifying event, such as job loss, reduction in work hours, or other changes in employment status that would typically result in loss of health benefits. This federal law ensures that employees and their families can maintain their group health insurance coverage for a limited period (usually up to 18 months) under certain circumstances, thereby providing crucial support during transitional periods when individuals might otherwise be left without access to necessary medical care.

Maintaining health insurance coverage is vital for the well-being of individuals, as it allows them to seek medical treatment, fill prescriptions, and access preventative care without the burden of high out-of-pocket costs that might arise if they were uninsured. COBRA plays a significant role in ensuring that people do not become uninsured simply due to changes in their employment situation and have the time to secure alternative coverage.