What does COBRA stand for?

COBRA stands for the Consolidated Omnibus Budget Reconciliation Act. This federal law, enacted in 1985, is designed to provide certain employees and their dependents the right to continue their health insurance coverage after a job loss, a reduction in hours, or other qualifying events. This legislation helps ensure that individuals do not face a gap in health insurance coverage during transitions in employment or life circumstances, allowing them to maintain their existing health benefits for a limited period, typically up to 18 months, and in some cases longer.

Understanding this acronym is crucial for professionals in the medical billing and coding field, as it relates to health insurance policies and the administrative aspects of maintaining coverage during times of change. This knowledge is essential for navigating claims and understanding patient rights as they pertain to ongoing health care coverage.