Which legislation requires employers to offer extended healthcare coverage?

The legislation that requires employers to offer extended healthcare coverage is COBRA, which stands for the Consolidated Omnibus Budget Reconciliation Act. This act allows employees and their dependents to continue their group health insurance coverage for a limited period after certain qualifying events that would typically result in the loss of coverage, such as job loss, reduction in work hours, divorce, or death. COBRA is significant because it ensures that individuals who might otherwise lose their health insurance can maintain coverage during transitional periods, thereby helping to manage healthcare costs and continuity of care during potentially challenging times.

The importance of COBRA lies in its role in providing an essential safety net for individuals who may struggle to find new employment or insurance coverage. Employers must comply with this law, actively informing eligible employees about their rights under COBRA, ensuring they understand the procedure to continue their coverage, and the terms involved.