Which legislation allows employees to continue their health care coverage after employment ends?

Prepare for your Health Insurance Billing Exam. Utilize flashcards and multiple choice questions, each with explanations. Boost your readiness!

The legislation that allows employees to continue their health care coverage after employment ends is known as COBRA, which stands for the Consolidated Omnibus Budget Reconciliation Act. This federal law was enacted in 1985 and is designed to provide individuals and families the right to continue their group health insurance coverage for a limited time after experiencing certain qualifying events, such as job loss, reduction in work hours, or other life events that would usually result in the loss of health insurance coverage.

COBRA is particularly significant because it offers a safety net for individuals transitioning between jobs or facing other employment-related changes, allowing them to maintain their health coverage and minimize disruptions in their access to necessary medical care. The law stipulates that employees must generally be allowed to continue their coverage for a period ranging from 18 to 36 months, depending on the specific circumstances.

The other legislative options listed—OBRA, HEDIS, and CLIA—serve entirely different purposes. OBRA refers to a variety of laws relating to budget reconciliation and social welfare, while HEDIS involves performance measures for health care services, and CLIA pertains to laboratory testing standards. Thus, these do not address the continuation of health care coverage following employment changes in the way that COBRA does.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy