Question 43

COBRA coverage is normally at the expense of the individual.

COBRA coverage is typically paid for by the individual who elects to continue their health insurance after leaving employment. This means that while the option to maintain coverage is available, the financial responsibility falls on the individual.

A) employer

This option is incorrect because under COBRA, the employer does not cover the costs of the continued health insurance. Instead, employers are required to offer the option to continue coverage, but the individual is responsible for paying the premiums.

B) individual

This option is correct as it accurately reflects the structure of COBRA coverage. After leaving their job, the individual must pay the full premium for their health insurance, which includes the portion previously covered by the employer, plus a possible administrative fee.

C) federal government

This option is incorrect since the federal government does not pay for COBRA coverage. The government's role is to enforce the law that allows for COBRA continuation coverage, but the financial burden lies with the individual.

D) insurance company

This option is incorrect because the insurance company does not bear the cost of COBRA coverage. The insurance company provides the coverage, but the responsibility for payment rests solely with the individual who chooses to continue their insurance.

Conclusion

The correct answer is B) individual, as it accurately identifies that the financial responsibility for COBRA coverage lies with the individual, not the employer or any other entity. All other options fail to recognize that while employers must offer COBRA, they are not responsible for the associated costs, which are solely borne by the individual electing to continue their health insurance.