What does COBRA allow for insured individuals who have terminated employment with a group sponsor?

COBRA, which stands for the Consolidated Omnibus Budget Reconciliation Act, provides significant benefits to individuals who have lost their job and, consequently, their employer-sponsored health insurance. One of the main features of COBRA is that it allows these individuals the option to continue their group health insurance coverage for a specified period after their employment has ended, provided they meet certain criteria.

This continuation of coverage is crucial because it gives individuals time to transition to new employment or other health insurance arrangements without losing their health coverage immediately. The specified coverage duration under COBRA typically extends for up to 18 months for most employees but can be longer in certain circumstances, such as disability.

Therefore, the correct answer reflects the essence of COBRA, emphasizing the continuation of health insurance coverage after leaving employment rather than converting to individual policies or receiving dual benefits from different plans. This provision ensures that individuals do not experience a gap in health care access during a vulnerable time in their lives.