If an employee's hours are reduced, then the employee is laid off, what is the extension provision under COBRA?

• A. 12 months
• B. 18 months
• C. 29 months
• D. No extension

Answer: (D)

The key idea is how COBRA continuation works after a qualifying event. When an employee experiences a qualifying event like termination of employment or a reduction in hours, COBRA allows continuation of group health coverage for up to 18 months. Additional extensions only come into play in specific, optional circumstances: an extension to 29 months if a Social Security disability is determined during the early period, and a possible extension to 36 months if a second qualifying event affects certain beneficiaries.

In this scenario, the event described is a layoff that follows a reduction in hours. There’s no mention of a disability and no second qualifying event that would trigger the longer extensions. Without those additional conditions, the only applicable period is the standard 18 months, and there isn’t an automatic extra extension beyond that. Therefore, there is no extension beyond the standard continuation period under these circumstances.