What does COBRA provide to beneficiaries in relation to health plans?

COBRA, which stands for the Consolidated Omnibus Budget Reconciliation Act, provides beneficiaries with a temporary continuation of health plan coverage after they experience certain qualifying events, such as job loss, reduction in work hours, or other significant changes in employment status. This allows individuals and their dependents to maintain their health insurance coverage for a limited time, typically up to 18 months, and in some cases longer, depending on the situation.

The primary goal of COBRA is to ensure that individuals do not suddenly lose their health care coverage during times of transition, giving them the opportunity to seek new employment or arrange for other insurance coverage without a significant gap in their health care services. This temporary coverage is crucial for individuals facing financial uncertainty and medical needs during such transitional periods.