What does COBRA allow an employee to do after termination?

What does COBRA allow an employee to do after termination?

• A. Continue group health insurance by paying premiums
• B. Switch to a new employer's plan automatically
• C. Convert to a life insurance policy
• D. Stop coverage without penalties

Answer: (A)

COBRA gives you the option to keep your existing group health coverage after a termination by paying the full premium (often with a small admin fee). This continuation is for a limited time, typically 18 months, and you must elect COBRA within the required window. It’s not automatic, it’s not about switching to another employer’s plan, it’s not about converting to life insurance, and you can’t just stop coverage without consequences. So the correct understanding is that you may continue the same group health insurance by paying premiums.

COBRA gives you the option to keep your existing group health coverage after a termination by paying the full premium (often with a small admin fee). This continuation is for a limited time, typically 18 months, and you must elect COBRA within the required window. It’s not automatic, it’s not about switching to another employer’s plan, it’s not about converting to life insurance, and you can’t just stop coverage without consequences. So the correct understanding is that you may continue the same group health insurance by paying premiums.