Which act allows employees who quit their job to continue health insurance coverage for up to 18 months?

The correct answer is that COBRA (Consolidated Omnibus Budget Reconciliation Act) allows employees who quit their job to continue their health insurance coverage for up to 18 months. This legislation was enacted to ensure that employees and their families can maintain their group health insurance coverage for a limited time after experiencing certain qualifying events, such as job loss, reduction in hours, or other significant life changes.

COBRA provides an essential safety net for those who may find themselves suddenly without employer-sponsored health insurance, thus preventing gaps in coverage that can lead to financial hardships due to medical expenses. It requires employers with 20 or more employees to offer continuation coverage so that former employees and their dependents can retain access to their health benefits.

While HIPAA, FMLA, and ERISA are important laws related to healthcare and employee rights, they do not specifically address continued health insurance coverage in the same manner as COBRA. HIPAA is primarily focused on protecting patient health information, FMLA provides eligible employees with unpaid, job-protected leave for specified family and medical reasons, and ERISA governs employee benefits but does not afford continuation of health insurance coverage specifically for individuals who leave their jobs.