Florida 2-20 General Lines Agent (Property, Casualty, Commercial Lines and Florida Law)Health InsuranceEasy
A Florida resident, age 45, is covered by a group health insurance plan provided by her employer. She recently left her job and is concerned about maintaining her health coverage for herself and her family. Which federal law allows her to continue her group health benefits temporarily by paying the premiums herself?
- AHealth Insurance Portability and Accountability Act (HIPAA)
- BEmployee Retirement Income Security Act (ERISA)
- CAffordable Care Act (ACA)
- DConsolidated Omnibus Budget Reconciliation Act (COBRA)
Show answer & explanationAnswer & explanation
Correct answer: D. Consolidated Omnibus Budget Reconciliation Act (COBRA)
COBRA allows individuals and their families to continue group health benefits for a limited period after certain qualifying events like job loss, provided they pay the full premium.
Why the other options are wrong
- A. HIPAA primarily addresses health insurance portability and patient privacy, not temporary continuation of group benefits.
- B. ERISA sets minimum standards for most voluntarily established pension and health plans in private industry, but doesn't specifically govern temporary continuation.
- C. ACA primarily focuses on making health insurance more affordable and accessible through exchanges, not temporary continuation of employer plans.
COBRA Continuation Coverage
A federal law that allows certain individuals and their dependents to temporarily continue their group health insurance coverage after a qualifying event, such as job loss or reduction in hours.
- Applies to employers with 20 or more employees.
- Coverage typically lasts 18 or 36 months.
- The individual is responsible for paying the full premium, plus a small administrative fee.
Memory trick: COBRA's coils help you cling to coverage.