Psychiatric-Mental Health Nurse Practitioner Exam

Which insurance policy allows an individual to retain their health insurance for 18 months after leaving a job?

1. HIPAA

2. COBRA

3. Medicare

4. Affordable Care Act

The correct answer is: COBRA

The correct answer is based on the Consolidated Omnibus Budget Reconciliation Act, commonly referred to as COBRA. This federal law allows employees and their families to continue their group health insurance coverage for a limited period after an event such as job loss, reduction in hours, or other qualifying events. Specifically, COBRA enables individuals to maintain their health insurance for up to 18 months, providing a critical safety net during transitions between employment or in case of unforeseen circumstances. The purpose of COBRA is to help individuals avoid a lapse in health insurance coverage during a vulnerable time when they may need healthcare services. It is especially important considering the potential costs of medical care without insurance. While other policies and acts may provide health coverage in various contexts, COBRA specifically addresses the immediate need for continuity in health insurance following employment changes, making it the most relevant choice in this scenario.