What is the primary purpose of COBRA?

The primary purpose of COBRA, which stands for the Consolidated Omnibus Budget Reconciliation Act, is to ensure that individuals can continue their health coverage after they have experienced employment termination or certain other qualifying events. Under COBRA, employees and their dependents are given the option to maintain their group health insurance coverage for a limited time—usually up to 18 months—after an event such as job loss, reduction in hours, or other specific situations that would normally result in the loss of health insurance.

This ability to continue coverage can be crucial, as losing a job can coincide with the loss of health insurance, making it more difficult for individuals and families to access necessary medical care. COBRA allows for a smoother transition during times of unemployment or life changes, ensuring that individuals do not face a healthcare gap simply due to a loss of job status.

The other options refer to different aspects of health care and insurance. Workers' compensation primarily addresses injuries or illnesses that occur as a result of employment, free medical assessments are not stipulated under COBRA, and health savings accounts play a separate role in managing healthcare costs, unrelated to the provisions of COBRA.