CES COBRA and Continuation Coverage 1 — Questions and Answers
Question 1: What does COBRA stand for?
- Consolidated Omnibus Budget Reconciliation Act (Correct answer)
- Coordinated Omnibus Benefits and Rights Act
- Comprehensive Outpatient Benefits Reform Act
- Consolidated Optional Benefits Retirement Agreement
Correct answer: Consolidated Omnibus Budget Reconciliation Act
COBRA stands for Consolidated Omnibus Budget Reconciliation Act, the 1985 law requiring employers to offer continuation of group health coverage.
Question 2: Which employers are required to offer COBRA continuation coverage?
- All employers regardless of size
- Employers with 20 or more employees in the prior year (Correct answer)
- Employers with 50 or more full-time equivalent employees
- Only federal government employers
Correct answer: Employers with 20 or more employees in the prior year
COBRA applies to group health plans sponsored by employers with 20 or more employees on more than 50% of typical business days in the prior calendar year.
Question 3: How many days does a qualified beneficiary have to elect COBRA after receiving notice of the right to continuation coverage?
- 30 days
- 45 days
- 60 days (Correct answer)
- 90 days
Correct answer: 60 days
Qualified beneficiaries have 60 days from the later of coverage loss or notice of COBRA rights to elect continuation coverage.
Question 4: What is the maximum premium that a COBRA enrollee can be charged?
- 100% of the group rate
- 102% of the group rate (Correct answer)
- 110% of the group rate
- 115% of the group rate
Correct answer: 102% of the group rate
COBRA enrollees can be charged up to 102% of the group health plan premium — 100% of the actual cost plus 2% for administrative fees.
Question 5: Voluntary termination of employment is considered a qualifying event for COBRA for how long?
- 12 months
- 18 months (Correct answer)
- 24 months
- 36 months
Correct answer: 18 months
Voluntary or involuntary termination of employment (other than gross misconduct) triggers a COBRA continuation period of 18 months.
Question 6: Divorce or legal separation from the covered employee triggers COBRA continuation for how long?
- 12 months
- 18 months
- 29 months
- 36 months (Correct answer)
Correct answer: 36 months
Divorce or legal separation is a qualifying event that allows a spouse up to 36 months of COBRA continuation coverage.
CES COBRA and Continuation Coverage 1
What does COBRA stand for?