CES COBRA and Continuation Coverage

Question 1

What does COBRA stand for?

Accepted Answer

Consolidated Omnibus Budget Reconciliation Act

Answer

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?

Accepted Answer

Employers with 20 or more employees in the prior year

Answer

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?

Accepted Answer

60 days

Answer

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?

Accepted Answer

102% of the group rate

Answer

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?

Accepted Answer

18 months

Answer

Voluntary or involuntary termination of employment (other than gross misconduct) triggers a COBRA continuation period of 18 months.

CES - Certified Enrollment Specialist Practice Test

CES - Certified Enrollment Specialist Practice Test

CES COBRA and Continuation Coverage