What is the main purpose of COBRA (1985)?

COBRA, which stands for the Consolidated Omnibus Budget Reconciliation Act of 1985, primarily serves the purpose of allowing individuals to continue their employer-sponsored health insurance coverage after they experience a qualifying event, such as job loss, reduction in work hours, or other specific life changes. This legislation is significant because it protects employees and their dependents from losing their health benefits unexpectedly during times of transition or hardship.

The ability to maintain access to health benefits is crucial, especially when individuals may not have alternative coverage immediately available. Under COBRA, eligible individuals can choose to continue their group health plan for a limited time (generally up to 18 months) by paying the full premium themselves, often with a small administrative fee.

Understanding the importance of this law highlights the necessity for stable health insurance coverage during periods of change, thus reinforcing the role COBRA plays in providing security and continuity of health care.

The other options do not accurately reflect the primary intent of COBRA. For instance, while options related to short-term disability coverage, regulation of health insurance premiums, and establishing state health insurance exchanges address important aspects of health insurance, they do not align with the specific focus of COBRA on the continuation of employer health benefits.