Under federal legislation, how long can individuals who are no longer part of their group health insurance must be allowed to continue their coverage?

The correct answer is that individuals who are no longer part of their group health insurance must be allowed to continue their coverage for a limited period of time. Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), individuals who lose their group health insurance due to specific qualifying events, such as job loss or reduction in hours, are entitled to continue their coverage for a limited duration, typically ranging from 18 to 36 months depending on the circumstances.

This limited period ensures that individuals have time to secure alternative health insurance, and it protects them from being immediately cut off from necessary healthcare benefits. The option of indefinite continuation of coverage is not feasible or provided under federal legislation, as it could place an undue burden on group insurance plans and increase costs. Coverage until a new job is found is not guaranteed since the duration is not tied to employment status but rather to specific time frames established by COBRA regulations. Ending coverage at the end of the month does not align with the provisions set forth by federal laws, which provide lengthier continuation options.