Senior Professional in Human Resources (SPHR) Certification 2025 – 400 Free Practice Questions to Pass the Exam

The correct choice pertains to the COBRA notification, which is a mandatory notice provided to employees upon their discharge regarding their health benefits. The Consolidated Omnibus Budget Reconciliation Act (COBRA) requires employers to inform employees of their rights to continue their health insurance coverage after leaving employment. This is crucial because it ensures that individuals are aware of their options to maintain health coverage, which can otherwise be abruptly lost when employment ends.

The COBRA notification must be delivered within specific time frames and outlines how the employee can elect to continue their health benefits, the duration of such coverage, and any applicable costs. This transparency helps protect employees from potential gaps in health coverage during a transitional period.

Other options like severance agreements, employee change in status forms, and exit interviews are not legally mandated to be provided upon discharge in relation to health benefits. While these may form part of an employer's procedures, none serve the specific legal requirement that COBRA notification fulfills in informing employees of their rights to continue health insurance coverage after leaving the company.