The excise tax applies separately for each qualified beneficiary for whom the required coverage is not provided.

• A. For each employee
• B. For each qualified beneficiary
• C. For each family
• D. For each plan

Answer: (B)

Each qualified beneficiary’s right to COBRA continuation coverage is treated separately. The excise tax is triggered for the individual who would lose coverage if COBRA isn’t offered, so the tax applies for every person who isn’t provided the required coverage. This ensures accountability for extending coverage to every eligible beneficiary, not just the plan or the employer as a whole. For example, if one employee’s spouse and child are eligible but only the employee is offered coverage, there would be separate excise taxes for the beneficiaries who were not provided coverage. Per-employee, per-family, or per-plan approaches don’t fit because the obligation and potential penalty attach to each individual beneficiary’s situation.