DECA Human Resources Management Practice Exam

What is the primary purpose of COBRA regulations?

1. To increase employee base salary

2. To provide a framework for collective bargaining

3. To allow continuation of health benefits after loss of employment

4. To establish benchmarks for job evaluations

The correct answer is: To allow continuation of health benefits after loss of employment

The primary purpose of COBRA regulations is to allow individuals to continue their health insurance coverage after they have lost their employment or experienced other qualifying events that would typically result in the loss of such benefits. COBRA stands for the Consolidated Omnibus Budget Reconciliation Act, which was enacted to ensure that employees and their families can maintain their health coverage for a limited time under the employer's group health plan despite experiencing job loss or other qualifying life events. By permitting individuals to continue their coverage, COBRA serves as a critical safety net, ensuring that they do not lose access to health care during transitional periods. This can help prevent gaps in health insurance, which can be particularly important for individuals with ongoing medical needs. The other options do not align with the intent of COBRA. Adjusting employee salaries, collective bargaining frameworks, and job evaluation benchmarks pertain to different aspects of human resources and employment laws, thus distinguishing the primary purpose of COBRA from those topics.