Life & Health Insurance Exam (National Portion)Federal RegulationsMedium
A former employee, who was covered under their employer's group health plan, voluntarily resigned from their job. They want to continue their health coverage under COBRA. Assuming the employer has 20 or more employees, for how long is the former employee generally eligible to continue coverage under COBRA?
- A36 months
- B6 months
- C29 months
- D18 months
Show answer & explanationAnswer & explanation
Correct answer: D. 18 months
For qualifying events such as voluntary termination of employment or reduction in hours, COBRA generally allows for continuation of coverage for up to 18 months for the employee and their covered dependents.
Why the other options are wrong
- A. 36 months is for other qualifying events, such as death of the employee, divorce, or loss of dependent status.
- B. 6 months is not a standard COBRA continuation period for this type of event.
- C. 29 months is an extended period available for individuals with a disability at the time of the qualifying event.
COBRA 18-Month Rule
COBRA generally allows employees and their dependents to continue group health coverage for up to 18 months following job termination (other than gross misconduct) or reduction in hours.
- Applies to voluntary or involuntary termination.
- Also applies to reduction of hours.
- Maximum duration is 18 months for this specific event.
Memory trick: COBRA's 'CLOCK' ticks differently for each event.