Ace California Life & Health Insurance Exam 2025 – Burst Into Your Bright Insurance Future!

COBRA stands for the Consolidated Omnibus Budget Reconciliation Act. This act provides important protections for individuals and their families by allowing them 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 events. This is crucial because it ensures that people do not lose their health care coverage immediately upon leaving a job or experiencing a change in employment status, allowing them time to find new employment or make other arrangements without a significant gap in coverage.

The key feature of COBRA is that it applies to employers with 20 or more employees and requires that they offer continuation coverage to qualifying individuals, although the individuals must pay the full premium for the coverage plus a small administrative fee. This provision is critical in maintaining access to necessary health care services during transitional periods in one's employment or life circumstances.