Which act allows workers who were laid off to continue to purchase health insurance under their previous employer's plan?

• A. The Consolidated Omnibus Budget Reconciliation Act (COBRA)
• B. The Patient Protection and Affordable Care Act (ACA)
• C. National Mental Health Act (NMHA)
• D. The Health Insurance Portability and Accountability Act (HIPAA)

Answer: (A)

COBRA provides a bridge from employer-sponsored coverage to new options by letting you keep the same group health plan after you’re laid off or experience a reduction in hours. You or your dependents can elect to continue that coverage for a set period (typically 18 months, with possible extensions in certain situations) by paying the full premium (plus a small admin fee). This keeps steady access to the same benefits while you transition to new coverage, rather than forcing an immediate gap.

Other acts don’t offer this exact continuation of the employer plan. The ACA creates new ways to obtain coverage, like marketplace plans with potential subsidies, but it doesn’t guarantee you can stay on your prior employer’s plan after termination. NMHA is focused on mental health policy, not continuation of employer-based coverage. HIPAA addresses portability and privacy in other ways but doesn't provide the same temporary extension of an employer’s plan after layoff.