COBRA continuation coverage must generally be made available for how long after a qualifying event such as termination of employment?

Why A is correct

COBRA generally requires group health plans sponsored by employers with 20 or more employees to offer continuation coverage for 18 months following a qualifying event such as termination of employment or reduction of hours. The qualifying individual pays up to 102% of the plan's cost. Certain events extend the period — for example, a second qualifying event can extend coverage to 36 months, and disability can add 11 months. The 18-month period is the baseline continuation entitlement for employment-related qualifying events.

Why the other options are wrong

• B) Six months is not a COBRA continuation period; the baseline is 18 months.
• C) Thirty-six months applies when a second qualifying event occurs or for certain dependent events, not to the initial termination of employment.
• D) Sixty months exceeds any COBRA continuation period; coverage cannot be extended to five years.

Memory hook

COBRA after the pink slip = 18 months of staying on the group plan, paid for by you.

Why A is correct

Under COBRA (Consolidated Omnibus Budget Reconciliation Act of 1985), a qualified beneficiary who loses group health coverage due to termination of employment or reduction of hours may continue coverage for up to 18 months. The continuation coverage is identical to the coverage active employees receive, but the qualified beneficiary pays the full premium, including the employer's share, plus up to a 2 percent administrative charge. This provision protects employees and their families from losing coverage at the moment of job loss.

Why the other options are wrong

• B) Twelve months is not a standard COBRA continuation period; the base period is 18 months.
• C) Twenty-nine months is the extended period that applies when the qualified beneficiary is found disabled under Social Security rules.
• D) Thirty-six months applies to certain dependent qualifying events such as divorce or the death of the covered employee, not to the employee's own termination.

Memory hook

Termination of employment = 18 months of COBRA. Disability adds 11 more; dependent events reach 36.