Consolidated Omnibus Budget Reconciliation Act (COBRA )

The video explains the Consolidated Omnibus Budget Reconciliation Act (COBRA), a federal law that allows employees to maintain their health insurance coverage after losing their job or experiencing other qualifying events. COBRA applies to employers with 20 or more employees and helps prevent financial hardship by allowing continued coverage, thus avoiding gaps that could lead to higher premiums or exclusion due to pre-existing conditions. The video outlines the responsibilities of both employers and employees, the types of qualifying events, and the benefits of maintaining coverage under COBRA.

What is the primary purpose of the Consolidated Omnibus Budget Reconciliation Act (COBRA)?

• To provide tax benefits to employers

• To allow employees to maintain health insurance after a qualifying event

• To reduce healthcare costs for employers

• To offer retirement benefits to employees

Which employers are required to offer COBRA coverage?

• All employers, regardless of size

• Employers with 20 or more employees

• Employers with 50 or more employees

• Employers with 10 or more employees

Why is it important for employees to avoid a break in health insurance coverage?

• To increase their retirement benefits

• To qualify for government subsidies

• To reduce their tax liabilities

• To prevent exclusion for pre-existing conditions

Which of the following is NOT considered a qualifying event for COBRA coverage?

• Divorce

• Voluntary job resignation

• Death of the employee

• Promotion within the same company

What is the maximum level of coverage an employee can purchase under COBRA?

• More than their previous employer's plan

• Less than their previous employer's plan

• Equal to their previous employer's plan

• Any level they choose