CPB Certified Professional Biller Certification Practice Exam

Which one of the following is a benefit derived from the COBRA act?

1. Lower premiums for healthcare coverage

2. Access to healthcare coverage for unemployed individuals

3. Continuation of health coverage after job loss

4. Free healthcare for all eligible individuals

The correct answer is: Continuation of health coverage after job loss

The COBRA (Consolidated Omnibus Budget Reconciliation Act) provides a crucial benefit for individuals who have experienced job loss or a reduction in work hours that affects their health insurance eligibility. Specifically, COBRA allows these individuals to continue their existing group health insurance coverage for a limited time, typically up to 18 months, under the same conditions as before the loss of employment. This continuation of health coverage is particularly important in times of transitioning between jobs or facing unemployment, as it ensures that individuals and their families maintain access to healthcare services without the need to seek new coverage immediately. It effectively serves as a safety net, helping to alleviate the risk of gaps in healthcare coverage that could lead to significant out-of-pocket expenses or loss of necessary medical care during a vulnerable time. While there are benefits related to healthcare coverage under COBRA, such as the option for employees to pay their premiums (which typically might be at a higher cost than what they previously paid), lower premiums or free healthcare are not part of what COBRA offers. The act does not provide free healthcare to individuals; rather, it facilitates the continuation of healthcare coverage that would otherwise be lost. Therefore, the provision that allows individuals to keep their coverage is the primary and most significant benefit derived from