What does COBRA stand for?

The correct answer, which stands for Consolidated Omnibus Budget Reconciliation Act, refers to a federal law enacted in 1985 that allows individuals and families to continue their health insurance coverage under certain circumstances after experiencing events such as job loss, reduction in work hours, or other qualifying events. This legislation is significant because it provides critical support for those transitioning between jobs or who are unable to access health insurance due to changes in their employment status.

Understanding the implications of COBRA is essential for anyone involved in health insurance in the United States, as it ensures that employees can maintain their health coverage temporarily, thus safeguarding their access to medical care during uncertain times. The other options do not accurately represent this law or its purpose, focusing instead on terms that do not align with existing health insurance legislation or practices, which makes them incorrect.