What happens if the plan terminates all coverage?

• A. COBRA rights end because the plan no longer offers coverage.
• B. COBRA rights continue until the plan's next renewal.
• C. COBRA rights are transferred to a new insurer automatically.
• D. COBRA rights are suspended but can be reinstated later.

Answer: (A)

COBRA continuation coverage only applies while the group health plan still exists and is offering coverage to participants. If the plan terminates all coverage for everyone, there’s no plan left to continue, so COBRA rights end. The protection is tied to a specific employer plan; COBRA doesn’t automatically transfer you to a different insurer, and there’s no automatic reinstatement or suspension when a plan completely ends. If the plan ends, you’d need to seek other coverage options outside COBRA.