What is the maximum administrative surcharge included in COBRA premiums?

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

What is the maximum administrative surcharge included in COBRA premiums?

Explanation:
The main idea is that COBRA allows a small administrative charge to help cover the cost of running the continuation coverage. That charge can be up to 2% of the premium. So the total amount a beneficiary pays is the base premium for the coverage plus as much as 2% for administration. Plans may choose to charge 0% if they cover those costs themselves, but they cannot exceed 2%. Options like 5% or 10% are not allowed under COBRA.

The main idea is that COBRA allows a small administrative charge to help cover the cost of running the continuation coverage. That charge can be up to 2% of the premium. So the total amount a beneficiary pays is the base premium for the coverage plus as much as 2% for administration. Plans may choose to charge 0% if they cover those costs themselves, but they cannot exceed 2%. Options like 5% or 10% are not allowed under COBRA.

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