What is the primary purpose of COBRA concerning health insurance?

COBRA, or the Consolidated Omnibus Budget Reconciliation Act, primarily serves the purpose of allowing individuals who have lost their jobs or experienced certain other qualifying events to continue their health insurance coverage for a limited period of time. This continuation of coverage applies to group health plans offered by employers with 20 or more employees. When a person is terminated or laid off, they may face a gap in health coverage, and COBRA ensures that they have the option to maintain their existing insurance for up to 18 months (or longer in certain situations).

The focus of COBRA is on providing this crucial safety net, which is especially important in times when individuals may be transitioning to new employment or facing financial uncertainty. Thus, the correct choice highlights how COBRA directly supports the health insurance needs of terminated employees, ensuring they can maintain necessary medical coverage during a potentially vulnerable time.