What act extends group health coverage to terminated employees and their families?

The correct answer is COBRA, which stands for the Consolidated Omnibus Budget Reconciliation Act. This federal law provides individuals and their families the right to continue their group health insurance coverage for a limited period after experiencing a qualifying event, such as job loss, reduction in hours, or other life events that would otherwise result in loss of coverage.

COBRA applies to employers with 20 or more employees and ensures that those who lose their job or experience other qualifying events can retain their health insurance benefits for a specified period, typically up to 18 months, with the option to extend under certain circumstances. This act serves to protect individuals and families from sudden loss of health coverage and provides them with a transitional period during which they can seek new employment or alternative insurance options.

The other options play distinct roles in the healthcare and insurance landscape but do not specifically extend group health coverage in the same manner as COBRA. HIPAA (the Health Insurance Portability and Accountability Act) primarily deals with privacy and security of health information and ensures the portability of health insurance coverage but does not address termination and continuation of group health plans. ERISA (the Employee Retirement Income Security Act) regulates employer-sponsored benefits but does not directly provide for the continuation of health insurance coverage after termination