CPB Certified Professional Biller Certification Practice Exam

What is the purpose of the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA)?

1. To mandate paid leave for employees

2. To provide continuation of health coverage after employment ends

3. To regulate the rates set by insurance companies

4. To establish mandatory healthcare enrollment procedures

The correct answer is: To provide continuation of health coverage after employment ends

The correct choice is indeed focused on the provision of continuity in health insurance coverage. The Consolidated Omnibus Budget Reconciliation Act of 1985, commonly known as COBRA, was enacted to allow employees and their families the right to continue their health insurance coverage under their employer's group plan for a limited period after certain events, such as job loss, reduction in work hours, or other life events that would normally result in the loss of health benefits. This legislation ensures that individuals do not face an immediate loss of healthcare services in a time of transition, thus providing a critical safety net for individuals who may need continued medical attention or treatment. The other options, while related to employee rights and benefits, do not capture the specific intent of COBRA. For instance, COBRA does not deal with paid leave or set insurance rates, nor does it establish mandatory procedures for healthcare enrollment; its sole purpose is to ensure the continuation of health coverage after employment changes.