What federal act allows employees to continue employer-sponsored health care coverage after leaving a job?

The Consolidated Omnibus Budget Reconciliation Act (COBRA) is the federal act that enables employees to maintain their employer-sponsored health care coverage after they have left a job. This legislation was enacted to provide employees and their families the option to continue receiving health insurance for a limited time following certain qualifying events, such as job loss, reduction in hours, or other circumstances that would typically result in the loss of health coverage.

COBRA allows individuals to purchase health insurance coverage under their employer's plan, but they must pay the full premium, which can include both the employee's share and any portion the employer previously contributed. This provision is crucial as it helps bridge potential gaps in health care coverage, allowing for continued access to medical services even during periods of unemployment or transition.

In contrast, other options relate to different employment matters. For example, the Family and Medical Leave Act provides eligible employees with unpaid, job-protected leave for certain family and medical reasons but does not address health insurance benefits specifically after job separation. The Employee Retirement Income Security Act primarily governs pension plans and retirement benefits, ensuring that those benefits are managed responsibly and fairly, while the Fair Labor Standards Act focuses on minimum wage, overtime pay, and child labor standards, again not pertaining to health insurance