What is the purpose of the Consolidated Omnibus Budget Reconciliation Act (COBRA)?

The Consolidated Omnibus Budget Reconciliation Act (COBRA) is designed to ensure that employees and their families can continue to receive health plan coverage after experiencing specific qualifying events, such as job loss, reduction in work hours, divorce, or death of the covered employee. This law extends the benefits of employer-sponsored health insurance for individuals who might otherwise lose their coverage due to these events.

COBRA allows eligible individuals to temporarily maintain their existing health insurance coverage under their employer's group plan, thereby providing a critical safety net during transitions that could otherwise leave them uninsured. This continuation of health benefits is particularly important during periods when individuals may face medical needs yet lack other coverage options.

This choice accurately reflects COBRA's fundamental purpose, which is to maintain access to health insurance rather than to eliminate it or provide immediate coverage, both of which misrepresent the act’s intent and function.