Final answer:
The correct response about COBRA is that dependents of an employee must be given the same rights as the employee. COBRA allows for continuation of group health insurance coverage after employment termination for a limited period under certain conditions.
Step-by-step explanation:
The correct answer about COBRA is that dependents of an employee must be given the same rights as the employee. COBRA, which stands for the Consolidated Omnibus Budget Reconciliation Act, enables individuals who have lost employment-based health coverage to continue their existing health insurance for a limited time under certain circumstances such as job loss, reduction in hours, transition between jobs, death, divorce, and other life events. The company does not terminate health insurance at the time of termination and the employee and their dependents can maintain their group coverage without having to qualify as individuals through COBRA for a specific period, though they must pay the entire premium themselves.
The employer mandate included in the Affordable Care Act (ACA), also known as Obamacare, requires larger employers (with more than 50 employees) to offer health insurance. Coverage for the uninsured, individuals with preexisting conditions, and the employer and individual mandates are central parts of the ACA, although its future has been uncertain with possible repeals or changes under different administrations.
Understandably, health insurance can be acquired either through employment-based insurance, which is often subsidized by the employer, or direct-purchase insurance, which is bought individually from a private company. The ACA also created health exchange markets for individuals without employer-provided insurance to shop for plans that may include for-profit or non-profit options, usually with the possibility of subsidies based on income.