CPB (Certified Professional Biller) Certification Practice Exam

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What does COBRA stand for in medical billing and insurance terms?

  1. Debt Collection Assistance Officer

  2. Defense Enrollment Eligibility Reporting System

  3. Consolidated Omnibus Budget Reconciliation Act of 1985

  4. Current Procedural Terminology

The correct answer is: Consolidated Omnibus Budget Reconciliation Act of 1985

COBRA stands for the Consolidated Omnibus Budget Reconciliation Act of 1985. This legislation is significant because it allows individuals to continue their health insurance coverage for a limited period after certain life events, such as job loss or a reduction in work hours, that would otherwise lead to a loss of health benefits. COBRA plays an essential role in ensuring that individuals and families have access to health insurance during transitional periods, thereby preventing gaps in coverage that could lead to financial hardship or lack of necessary medical care. Understanding COBRA is crucial for professional billers, as it affects how billing and insurance claims are processed in the context of continued health coverage.

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