What does COBRA provide to workers and their families after employment termination?

COBRA, which stands for the Consolidated Omnibus Budget Reconciliation Act, provides a crucial benefit to workers and their families by allowing them to continue their group health insurance coverage for a limited time after employment termination. This provision ensures that individuals who lose their jobs, or experience other qualifying events (such as reduction in hours, divorce, or death of the covered employee), can maintain access to their previous health benefits, albeit usually at their own cost.

By allowing for the continuation of group health benefits, COBRA helps to ensure that individuals do not face an interruption in healthcare coverage during a vulnerable time when they might be facing financial hardship or an uncertain job situation. This continuity is vital for maintaining access to necessary medical care and keeping insurance coverage for pre-existing conditions.

The other options do not align with what COBRA offers. Extended unemployment benefits address income loss rather than health insurance coverage, reduced healthcare costs refer to a potential benefit of some health programs but not COBRA specifically, and access to retirement funds is unrelated to COBRA’s provisions concerning health insurance.