If the employer changes the underlying plan for all similarly situated individuals, COBRA rights may do what?

• A. Be adjusted to mirror the changes
• B. Unaffected
• C. Terminated
• D. Automatically convert to new plan

Answer: (A)

The concept being tested is how COBRA continuation coverage mirrors changes made to the employer’s group health plan. When the underlying plan is amended for all similarly situated employees, the terms of that plan apply to everyone, including those on COBRA. So, COBRA rights may be adjusted to mirror the changes, meaning the continuation coverage reflects the updated benefits, cost-sharing, and premiums just as active employees experience.

The other options don’t fit because COBRA isn’t fixed in stone if the plan changes; it isn’t automatically unaffected, nor is it automatically terminated or converted to a separate new plan. It remains aligned with the amended plan, unless the plan terminates or COBRA eligibility ends for other reasons.