Answer 1: C
Under federal COBRA rules, you generally have at least 60 days to elect coverage, counted from the later of the date you receive the election notice or the date your coverage would otherwise end. If you elect in time and pay the premiums, coverage is retroactive to the day your job-based coverage ended.
That retroactive feature is useful: if you get sick or injured during the election period, you can still elect COBRA and have the care covered. Just do not miss the deadline, and watch the first premium due date, which is usually 45 days after you elect.
Tip: COBRA generally applies to employers with 20 or more employees. Many states have similar “mini-COBRA” laws for smaller employers.
Question 2 of 8: The price tag
At work, you paid $180 a month for your health plan. Why might your COBRA premium be $900 or more?
- A. COBRA plans are worse and cost more to run
- B. You now pay the full premium, including the share your employer used to pay, plus up to 2% for administration
- C. COBRA adds a penalty for leaving your job
- D. The price is set by the government