What does COBRA allow individuals to do after leaving employment?

COBRA, which stands for the Consolidated Omnibus Budget Reconciliation Act, is important because it provides individuals who leave their job, whether voluntarily or involuntarily, the option to continue their health insurance coverage for a limited period. This means that if someone has been covered under a group health insurance plan through their employer, they can maintain that coverage for a specific duration—typically up to 18 months, and in some cases longer—after leaving their job.

This benefit allows individuals to remain insured without a gap, which is crucial as they transition to new employment or make other arrangements for their healthcare needs. Continuity of health insurance coverage under COBRA can help avoid any disruptions in access to medical care or financial burdens that come from unexpected medical costs during times of employment change.

The focus of COBRA is on health insurance coverage, making it distinctly different from aspects like life insurance benefits, which are typically governed by different regulations. Additionally, while COBRA does not automatically switch individuals to Medicare, it does allow for ongoing coverage of existing health benefits rather than requiring individuals to make immediate changes to their insurance options.