What is the primary purpose of COBRA?

• A. To extend Medicare benefits
• B. To mandate employer-provided dental care
• C. To provide free coverage to retirees
• D. To allow employees and their families to maintain group health coverage after a qualifying event

Answer: (D)

COBRA is designed to help people keep their employer-sponsored health coverage when a life change would otherwise end it. When a qualifying event occurs—such as leaving a job, a reduction in hours, the death of the employee, a divorce, or a dependent no longer meeting the plan’s conditions—the law gives the employee and their family the right to continue the same group health plan for a limited period. They pay the full cost of the plan plus a small administrative fee, so this is continuation coverage rather than free coverage. It preserves access to the same benefits during a transition, not by extending Medicare benefits or mandating dental care; the coverage remains the same plan, just continued for a set time (typically up to 18 months, with some cases lasting longer).