Vermont Life, Accident & Health (LAH) Insurance 2025 – 400 Free Practice Questions to Pass the Exam

COBRA, which stands for the Consolidated Omnibus Budget Reconciliation Act, allows individuals to continue their health insurance coverage in specific circumstances, particularly following a qualifying event. One of these qualifying events is job loss, whether voluntary or involuntary, which results in a loss of group health insurance coverage.

When an individual is terminated from their job or experiences a reduction in work hours that leads to the loss of their employer-sponsored health benefits, COBRA provides the option to maintain that coverage for a limited period, typically up to 18 months. This is important for individuals and their families as it enables them to retain access to health care during a time when they may find themselves vulnerable, such as during unemployment.

The other circumstances listed do not qualify under COBRA provisions. For example, receiving negative health assessments does not relate to employment status, which is crucial for COBRA eligibility. Reaching retirement age may not automatically relate to job loss and the available health benefits under COBRA. Similarly, moving to another state does not create qualifying conditions under COBRA, as eligibility is tied to employment status rather than geographic location.