CARD Q098
An eligible worker loses coverage after a qualifying event under a COBRA-covered employer plan. What does COBRA generally provide?
- A permanent right to remain in the group plan while premiums are paid
- An opportunity to elect temporary continuation of group health coverage
- Automatic enrollment in a new individual health policy
- Continuation with the employer required to keep paying its former premium share
An opportunity to elect temporary continuation of group health coverage
Continuation is subject to eligibility, notice, election, and payment rules. The beneficiary can generally be charged the applicable premium plus an allowed administrative amount.
Why each choice is right or wrong
A. A permanent right to remain in the group plan while premiums are paid
Incorrect. COBRA is temporary and subject to termination rules.
B. An opportunity to elect temporary continuation of group health coverage
Correct. Continuation is subject to eligibility, notice, election, and payment rules. The beneficiary can generally be charged the applicable premium plus an allowed administrative amount.
C. Automatic enrollment in a new individual health policy
Incorrect. COBRA generally continues group coverage rather than automatically issuing an individual policy.
D. Continuation with the employer required to keep paying its former premium share
Incorrect. COBRA alone generally does not require the employer to keep paying its former share.
Review the related terms
Use these lessons to revisit the concepts and try additional practice questions.