Which statement about federal COBRA is NOT true?

• A. It applies to group health plans of employers with 20+ employees.
• B. Some small-employer plans under 20 rely on state mini- COBRA.
• C. It covers all employer plans regardless of size.
• D. It provides a premium up to 102%.

Answer: (C)

Federal COBRA continuation coverage depends on the size of the employer's group health plan. It applies to group health plans maintained by employers with 20 or more employees, meaning not all employer plans are covered. For employers with fewer than 20 employees, federal COBRA does not apply, though many states have mini-COBRA laws that require continuation coverage for small-employer plans. The premium for COBRA is allowed to be up to 102% of the plan's cost to the employer, which includes the 2% allowed for administrative fees. So the statement claiming it covers all employer plans regardless of size is not true.