State RegulationsPA specificDifficulty 3/5
A benefits manager in Pennsylvania must explain continuation coverage to a departing employee. Which statement correctly relates the federal continuation framework to Pennsylvania's law?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Continuation coverage in the United States runs on two tracks: the federal COBRA statute, and Pennsylvania's own continuation act codified at 40 P.S. §§ 981-1 et seq. Pennsylvania's law is the state analogue through which many employees obtain continued group coverage, and it operates alongside the federal framework rather than being displaced by it. Neither regime repealed the other, and Pennsylvania's act is original state legislation whose administration the Pennsylvania Insurance Department touches through its oversight of insurers.
Why the other options are wrong
- A) Federal law did not repeal Pennsylvania's continuation act; the state law remains in force as Pennsylvania's own framework.
- B) Pennsylvania's continuation act stands on its own as state law; it is not contingent on a federal election of state administration.
- D) 40 P.S. § 981-1 is original Pennsylvania legislation; calling it a renamed federal statute erases the distinction the exam tests.
Memory hook
Two continuations, two sovereigns: federal COBRA and Pennsylvania's own act.