What is COBRA primarily designed to provide?

COBRA, or the Consolidated Omnibus Budget Reconciliation Act, is primarily designed to provide individuals and their families with the option to continue their group health insurance coverage for a limited period after experiencing the loss of employment or a reduction in work hours. This legislation aims to ensure that, despite job loss or changes in employment status, individuals do not immediately lose their healthcare benefits, allowing them to maintain access to medical care during a transitional period.

COBRA requires employers with 20 or more employees to offer continuation coverage to certain groups of individuals, including employees who have left the company, their spouses, and their dependents. This continuation of coverage can typically last for 18 to 36 months, depending on the qualifying event and circumstances. Participants in COBRA must pay the full premium for the health insurance, which may be higher than the amount they contributed while employed.

The other options do not align with the primary purpose of COBRA. Long-term support for unemployed individuals pertains to social safety nets rather than healthcare coverage. Free health insurance for retirees would not be provided under COBRA provisions, as COBRA specifically deals with continuation of coverage from group plans rather than offering free benefits. Access to military insurance benefits is governed by different regulations and is not the focus