Under COBRA, a qualified beneficiary who loses group health coverage because of termination of employment (other than for gross misconduct) may generally:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
COBRA gives qualified beneficiaries the right to continue their group health coverage after a qualifying event such as termination of employment or reduction in hours. The beneficiary must pay the entire premium — the employee's share plus the employer's share — plus an administrative fee, which together may not exceed 102 percent of the applicable premium for the coverage. COBRA is a continuation of the existing group coverage for a limited period, not free coverage, not a conversion to a permanent policy, and not an employer-paid benefit.
Why the other options are wrong
- B) COBRA continuation lasts a limited period and requires the beneficiary to pay the premium; it is neither free nor lifelong.
- C) COBRA continues the group coverage itself; it is not a conversion to a permanent individual policy, which is a separate right in some plans.
- D) The qualified beneficiary pays the COBRA premium; the employer does not pay it on the former employee's behalf.
Memory hook
COBRA = keep your workplace coverage by paying the whole premium yourself — usually for a limited period, not forever.