State RegulationsPA specificDifficulty 2/5
A Pennsylvania human resources manager asks how the federal COBRA continuation framework fits with state regulation of the insurers that underwrite her group plan. Which statement is accurate?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
COBRA is the federal continuation framework, named here in words only because it is federal law rather than a Pennsylvania statute. It does not displace state insurance regulation: the insurers that underwrite group health plans in Pennsylvania remain subject to Pennsylvania's insurance laws, administered by the Pennsylvania Insurance Department, including the state continuation framework at 40 P.S. § 981-1. The federal and state regimes operate in their own lanes.
Why the other options are wrong
- A) Federal continuation law does not erase state insurance oversight; Pennsylvania's regulators retain authority over the insurers.
- B) COBRA is federal legislation, not a Pennsylvania statute; Pennsylvania's continuation act is the state-level counterpart.
- D) COBRA's obligations reach employer group health plans, and Pennsylvania's own continuation law gives the states an active role.
Memory hook
COBRA is federal; the insurer in the plan still answers to Pennsylvania.