What does COBRA require of employers?

COBRA, which stands for the Consolidated Omnibus Budget Reconciliation Act, requires employers to offer employees and their families the opportunity to continue their group health insurance coverage for a limited time after certain qualifying events, such as job loss, reduction in hours, or other life changes that might affect health insurance eligibility. This provision helps ensure that individuals do not lose their health coverage during transitional periods when they might need it the most.

This continuation of coverage under COBRA is particularly important because it allows individuals to maintain the same health benefits they had while employed, provided they pay the premiums, including any administrative costs. The duration of this continued coverage typically lasts 18 months, although it can be extended in certain circumstances. Emphasizing this aspect not only highlights COBRA's purpose but also illustrates how it serves as a safety net for individuals navigating employment changes.

The other options either misrepresent the specifics of COBRA's requirements or do not align with its intent, such as providing free or lifetime insurance, or reducing costs significantly, which are not mandates under COBRA.