What federal law allows individuals to stay on an employer-sponsored health plan for a certain period?

The Consolidated Omnibus Budget Reconciliation Act (COBRA) is the federal law that provides individuals the right to continue their employer-sponsored health insurance coverage for a limited time after certain qualifying events, such as job loss, reduction in work hours, divorce, or the death of the covered employee. COBRA requires employers with 20 or more employees to offer this continuation of coverage, allowing individuals and their dependents to maintain their health benefits for up to 18 months, and in some cases, up to 36 months.

This law is particularly important because it helps bridge the gap for those who may otherwise lose their health insurance during transitions that could make them more vulnerable to loss of coverage. It also holds the employer accountable to facilitate this continuation of coverage, providing a safety net for individuals facing sudden changes in their employment status or personal situations. Other options do not pertain to ongoing coverage of employer-sponsored health plans, making COBRA the correct choice for this question.