What is COBRA primarily designed to do?

COBRA, which stands for the Consolidated Omnibus Budget Reconciliation Act, is primarily designed to extend group health coverage to employees and their dependents after certain qualifying events, such as job termination, reduction in work hours, or other circumstances that would typically result in the loss of health benefits. This federal law ensures that individuals can maintain their health insurance coverage for a specified period (usually up to 18 months) even after leaving their job, thereby providing a critical safety net during times of transition.

The focus of COBRA is on preserving access to group health insurance rather than creating new coverage options for specific demographics, such as individuals on government assistance, part-time employees, or uninsured minors. This makes it a vital resource for those facing the sudden loss of healthcare benefits, ensuring continuity of care. By allowing individuals to continue their employer-sponsored health insurance, COBRA helps mitigate the potential gap in coverage and provides financial relief during uncertain times.