Under what circumstances can COBRA coverage end early?

• A. If the beneficiary changes job
• B. If the premium is not paid on time, if the plan terminates for all participants, or if the beneficiary becomes eligible for another group plan or Medicare
• C. Only if the beneficiary moves out of state
• D. If the beneficiary submits a late health claim

Answer: (B)

The key idea is that COBRA continuation coverage ends early only under specific events: you fail to pay the premium on time, the employer plan terminates for everyone, or you become eligible for another group health plan or Medicare. These conditions directly remove the need for or availability of COBRA coverage, so it ends as a result.

Why this is the best fit: any other change like switching jobs or moving to another state doesn’t automatically terminate COBRA. You may still keep COBRA unless you enroll in another group plan or Medicare, or unless the plan itself ends for all participants. A late health claim doesn’t terminate coverage either; it might affect eligibility for a claim, but it doesn’t cause COBRA to end.

So, the circumstances that truly end COBRA early are nonpayment, plan termination for all participants, or becoming eligible for another group plan or Medicare.