COBRA allows an employee to remain under an employer's group plan after certain life events. What is a key condition?

• A. It provides automatic enrollment in Medicaid.
• B. It applies only to self-employed individuals.
• C. It allows continued group plan coverage for a period after loss of job, usually requiring the employee to pay premiums.
• D. It eliminates all costs for continued coverage.

Answer: (C)

COBRA provides a way to keep employer-sponsored health coverage after a qualifying life event, but it isn’t automatic or free. The essential condition is that you must elect to continue the coverage and pay the full premium yourself (often plus a small administrative fee). This payment is typically higher than what active employees pay because the employer no longer contributes. If you miss or delay premium payments, the coverage can be terminated. Coverage lasts for a limited period—commonly up to 18 months, with possible extensions to 36 months in certain situations.