Which federal law requires employers with 20 or more employees to provide continuation of group health insurance coverage for terminated employees?

The correct answer is the Consolidated Omnibus Budget Reconciliation Act (COBRA), which is a significant piece of legislation in the realm of employee benefits. COBRA mandates that employers with 20 or more employees must offer continued health insurance coverage to employees who have been terminated or have experienced a reduction in work hours that would otherwise lead to the loss of health insurance benefits. This continuation coverage is important as it allows individuals and their families to maintain their group health insurance for a limited time, generally up to 18 or 36 months, depending on the qualifying event.

COBRA also sets specific regulations regarding the notification process and the premiums that beneficiaries must pay. This provision is critical in ensuring that individuals do not face a sudden loss of health coverage during transitions like unemployment, thereby emphasizing the importance of health insurance continuity for those affected by such changes.

The other options pertain to different aspects of health care and employee benefits. The Employee Retirement Income Security Act (ERISA) deals primarily with the regulation of employee benefits plans but does not offer the same specific provisions for continuation coverage as COBRA does. The Affordable Care Act (ACA) includes many reforms related to health insurance but is not focused on continuation of coverage for terminated employees in the same manner as COBRA