What does the Consolidated Omnibus Budget Reconciliation Act (COBRA) require from employers?

The correct answer is that the Consolidated Omnibus Budget Reconciliation Act (COBRA) requires employers to offer temporary continuation of health coverage after qualifying events. COBRA is a federal law that allows employees and their dependents to maintain their group health insurance benefits for a limited period following certain events, such as job loss, reduction in work hours, divorce, or death of the covered employee.

Under COBRA, employers must inform eligible employees of their right to choose to continue their health insurance coverage for up to 18 months, and in some cases, up to 36 months, depending on the nature of the qualifying event. This provision ensures that individuals do not experience an immediate loss of health insurance coverage during periods of transition or hardship, thus protecting their access to healthcare services.

The requirement for a temporary continuation rather than permanent coverage reflects the law's intent to balance the need for safety nets in health benefits with the realities of employer responsibilities and costs. Therefore, this provision helps employees navigate significant life changes without immediately jeopardizing their healthcare access.