What is COBRA?

The correct choice B refers to the Consolidated Omnibus Budget Reconciliation Act, commonly known as COBRA. This federal law, enacted in 1986, primarily aims to provide continuing health insurance coverage to employees and their families after employment or other qualifying events that would typically result in the loss of health benefits. Under COBRA, individuals who lose their health benefits due to specific triggering events, such as job loss, reduction in hours, or other life changes, have the right to extend their health coverage under the employer's group plan for a limited time, typically up to 18 months for most situations.

The importance of COBRA lies in its role in providing a safety net for employees who might otherwise be left without health coverage during transitions. It is particularly valuable in cases of job loss, allowing individuals to maintain access to necessary medical care.

The other options do not accurately reflect the provisions or the title of the act. The mention of an act that governs employee health insurance plans is too vague and does not specify COBRA's unique provision of extended coverage. Similarly, the Comprehensive Occupational Benefits Recovery Act and the Cooperative Benefits Regulation Act do not exist or relate to the provisions outlined in COBRA. Understanding COBRA is essential for employees and employers alike, as