What does COBRA provide for employees after being let go?

COBRA, or the Consolidated Omnibus Budget Reconciliation Act, is a federal law that allows employees who have lost their jobs, or experienced a reduction in hours, to continue their health insurance coverage for a limited time. Specifically, it enables eligible employees and their dependents to maintain their existing employer-sponsored health insurance plan for up to 18 months after employment ends. This is particularly important for individuals who might otherwise lose access to healthcare due to job loss, as it provides a crucial safety net during a transition period while they seek new employment.

While the other options mention benefits that sound appealing, they do not align with what COBRA specifically offers. Immediate unemployment benefits are not provided under COBRA; that falls under state unemployment insurance programs. Similarly, pension portability is not a feature of COBRA; pension plans operate independently and have their own regulations. Finally, COBRA does not include severance pay, which is often provided at the discretion of the employer and is not mandated by federal law. Thus, the correct choice highlights COBRA's primary function in allowing individuals to retain their health insurance after a job loss.