State RegulationsPA specificDifficulty 2/5
An employee covered under a Pennsylvania employer's group health plan loses eligibility for coverage. Under 40 P.S. § 981-1, what protection does Pennsylvania provide?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
40 P.S. § 981-1 is the heart of Pennsylvania's health care continuation law: when group coverage ends, the affected person may elect to continue that coverage under the conditions the act prescribes, instead of losing protection outright. Continuation keeps the same group contract in force rather than forcing an immediate move to an individual policy. This is Pennsylvania's state analogue to the federal COBRA continuation framework, and the Pennsylvania Insurance Department oversees the insurers that administer it.
Why the other options are wrong
- A) The Pennsylvania Insurance Department regulates the market; it does not pay individual medical bills under the continuation act.
- C) The act provides continuation of the existing group coverage, not a compulsory purchase of an individual policy by the employer.
- D) Continuation is not free; the act contemplates that premium payment obligations accompany continued coverage.
Memory hook
Lose the job, not the coverage: Pennsylvania's continuation act keeps the group plan alive.