COBRA is a federal law that requires certain employers to offer what?

• A. Permanent health coverage
• B. Temporary continuation of group health coverage
• C. Automatic enrollment in a private plan
• D. Employer-provided life insurance

Answer: (B)

COBRA provides a temporary continuation of group health coverage after a qualifying event, so someone can keep the same employer-sponsored plan for a limited period at group rates. It’s not permanent coverage, and it isn’t automatic enrollment in a private plan or anything to do with life insurance. The option applies to employers with group health plans (typically those with 20 or more employees) and covers the employee and certain family members after events like job loss or a reduction in hours. Coverage lasts for a limited time—commonly 18 months, with possible extensions in some situations (for example, disability or other qualifying events). The person must pay the premiums.