What does COBRA require of health plans regarding group health coverage?

COBRA, which stands for the Consolidated Omnibus Budget Reconciliation Act, establishes the right for certain individuals to continue their group health coverage for a limited period after experiencing a qualifying event, such as job loss, reduction in work hours, or other changes in employment status. This continuation of coverage is temporary, typically lasting from 18 to 36 months depending on the specific circumstances surrounding the qualifying event.

The requirement is designed to provide a safeguard for individuals to maintain access to health insurance during transitional periods, allowing them to seek new employment or manage health-related issues without the immediate pressure of losing health benefits altogether. COBRA does not provide a permanent solution nor does it eliminate premiums; beneficiaries are typically required to pay the entire premium, plus a small administrative fee.

Understanding these features is crucial for compliance and for ensuring that the rights of individuals covered under group health plans are upheld during significant life changes.