What is COBRA and what coverage does it provide?

• A. The Consolidated Omnibus Budget Reconciliation Act; allows temporary continuation of group health coverage after job loss or other qualifying events
• B. COBRA is a private insurance marketplace
• C. COBRA is a Medicare program
• D. COBRA provides lifetime coverage

Answer: (B)

COBRA stands for the Consolidated Omnibus Budget Reconciliation Act, and it provides temporary continuation of a group health plan after a qualifying event, such as job loss, reduced hours, divorce, or the covered employee’s death. The coverage is the same plan you had as an employee, but you typically pay the full premium (often plus a small administrative fee). It’s not a private insurance marketplace, not Medicare, and it doesn’t offer lifetime coverage. Usually COBRA can extend for up to 18 months, with possible longer extensions (up to 36 months) in certain situations; you must elect COBRA within a set window (often 60 days) and keep up with premiums to stay covered.