What happens to COBRA rights if the employer terminates the entire group plan?

• A. COBRA rights for that plan end with the plan termination, unless another continuation option is available; coverage would end.
• B. COBRA rights end with plan termination immediately with no exceptions.
• C. COBRA rights are extended for 12 months after termination.
• D. Employees must enroll in a new plan to maintain coverage.

Answer: (A)

COBRA continuation rights exist only for continuing coverage under a specific group health plan when a qualifying event occurs. If the employer terminates the entire group plan and there is no replacement or other continuation option available, there is nothing left to continue, so COBRA rights end with the plan termination. The phrase “unless another continuation option is available” covers situations where a successor plan or another form of continuation (like a different group plan or state continuation program) could allow continued coverage. The other options aren’t correct because there isn’t automatically a fixed 12-month extension, and you don’t have to enroll in a new plan unless a valid continuation option exists.