CES COBRA and Continuation Coverage 2 — Questions and Answers
Question 1: What is the grace period for paying COBRA premiums once a payment is due?
- 15 days
- 30 days (Correct answer)
- 45 days
- 60 days
Correct answer: 30 days
COBRA requires a minimum 30-day grace period for premium payments; plans may offer a longer grace period but not shorter.
Question 2: An employer must notify the plan administrator of a qualifying COBRA event within how many days?
- 14 days
- 30 days (Correct answer)
- 45 days
- 60 days
Correct answer: 30 days
Employers must notify the plan administrator within 30 days of a qualifying event such as termination of employment or reduction in hours.
Question 3: When is COBRA coverage considered to begin for an electing beneficiary?
- On the date the election form is received
- On the date coverage would otherwise have been lost (Correct answer)
- On the first day of the following month
- On the date the first premium is paid
Correct answer: On the date coverage would otherwise have been lost
COBRA coverage is retroactive, beginning on the date the qualified beneficiary would have lost coverage due to the qualifying event.
Question 4: A qualified beneficiary who is disabled at the time of COBRA election may extend coverage for up to:
- 18 months
- 24 months
- 29 months (Correct answer)
- 36 months
Correct answer: 29 months
A disabled qualified beneficiary (under SSA determination) can extend COBRA from 18 to 29 months, with a premium up to 150% during the extension.
Question 5: Which of the following terminates COBRA coverage before the maximum period expires?
- The beneficiary turns 26
- The beneficiary moves to a different state
- The beneficiary becomes covered under another group health plan with no exclusion for pre-existing conditions (Correct answer)
- The beneficiary changes doctors
Correct answer: The beneficiary becomes covered under another group health plan with no exclusion for pre-existing conditions
COBRA terminates early when the qualified beneficiary becomes covered under another group health plan that does not impose a pre-existing condition exclusion for the condition.
Question 6: Under COBRA, the plan administrator must provide the initial COBRA notice (General Notice) to newly covered employees and spouses within:
- 30 days of plan enrollment
- 60 days of plan enrollment
- 90 days of plan enrollment (Correct answer)
- 120 days of plan enrollment
Correct answer: 90 days of plan enrollment
The general COBRA notice must be provided within 90 days of when coverage under the plan begins for a new employee and covered spouse.
CES COBRA and Continuation Coverage 2
What is the grace period for paying COBRA premiums once a payment is due?