What is a group health plan?

• A. An employee benefit plan that provides medical care to participants (typically employees, their spouses, and their dependents).
• B. An employer-sponsored plan that covers only executives
• C. A plan that covers only retirees
• D. A government-funded medical program

Answer: (A)

A group health plan is an employee benefit plan that provides medical care to participants, typically including employees and their spouses and dependents. It’s the coverage offered by an employer or an employee organization (such as a union), covering a group of workers rather than an individual policy. Under COBRA, eligibility hinges on being covered by such a plan, rather than a plan that’s limited to executives, limited to retirees, or a government-funded program. So the core idea is coverage provided to a group of employees and their families through an employer or related organization.