The last 11 months of COBRA coverage may see an administrative fee increase from 102% to what percent?

Prepare for the Consolidated Omnibus Budget Reconciliation Act (COBRA) Test. Utilize flashcards and multiple choice questions, each with hints and explanations. Ace your test with confidence!

Multiple Choice

The last 11 months of COBRA coverage may see an administrative fee increase from 102% to what percent?

Explanation:
COBRA premiums include the plan’s actual cost plus an administrative fee. The standard arrangement adds a 2% administrative fee, so you’d normally see a charge of 102% of the cost. In the last portion of the COBRA continuation period—the final 11 months—the administrative fee can be increased, bringing the total to 150% of the plan’s cost. This means the admin fee would rise from 2% to 50%, resulting in a 150% total. The other percentages would reflect smaller end‑period increases, but the scenario specifically notes the higher end amount, 150%, as the applicable figure.

COBRA premiums include the plan’s actual cost plus an administrative fee. The standard arrangement adds a 2% administrative fee, so you’d normally see a charge of 102% of the cost. In the last portion of the COBRA continuation period—the final 11 months—the administrative fee can be increased, bringing the total to 150% of the plan’s cost. This means the admin fee would rise from 2% to 50%, resulting in a 150% total. The other percentages would reflect smaller end‑period increases, but the scenario specifically notes the higher end amount, 150%, as the applicable figure.

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