17. Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), a qualifying event ensures that an employee who loses coverage can
Answer: A
An employee who loses coverage can elect to continue coverage.
Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), a qualifying event allows employees who lose their health insurance coverage to elect to continue that coverage for a limited period under certain conditions.
A) elect to continue coverage.
This option is correct because COBRA specifically provides that employees who experience qualifying events, such as termination or reduction in hours, are entitled to continue their group health insurance coverage, albeit often at their own expense.
B) request a waiver of premium.
This option is incorrect. COBRA does not provide employees with the ability to request a waiver of premium payments. Instead, it requires individuals to pay the full premium amount to maintain their coverage.
C) convert to an individual policy.
This option is incorrect as COBRA does not automatically grant the right to convert a group policy to an individual policy. While some plans may offer conversion options after COBRA coverage ends, this is not a feature of COBRA itself.
D) transfer coverage to another group.
This option is also incorrect. COBRA does not allow for the transfer of coverage to another group plan. Instead, it mandates that the individual can continue their current group coverage if they experience a qualifying event.
Conclusion
The correct answer is A, as it accurately reflects the primary function of COBRA, which is to allow employees who lose their health insurance coverage to elect to continue that coverage. All other options misinterpret the provisions of COBRA and do not align with the protections afforded to employees under this legislation.