Under the COBRA 102% rule, the premium is 102% of what amount?

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

Under the COBRA 102% rule, the premium is 102% of what amount?

Explanation:
The 102% rule means the COBRA premium is based on the amount the plan would charge for active coverage, with a 2% admin fee added. In other words, you multiply the full group premium (the rate the plan would charge a similarly situated employee) by 1.02. So the base amount you start from is the full group premium.

The 102% rule means the COBRA premium is based on the amount the plan would charge for active coverage, with a 2% admin fee added. In other words, you multiply the full group premium (the rate the plan would charge a similarly situated employee) by 1.02. So the base amount you start from is the full group premium.

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