Question

Due to a recession, Pat has voluntarily changed her status from full-time to part-time with her employer. Prior to the change, she and her husband were covered under the company health plan, Which statement regarding COBRA is correct

A) Because her change is voluntary, COBRA rules do not apply
B) COBRA rules allow continuation of health coverage in this situation for up to 36 months
C) COBRA rules allow continuation of health coverage in this situation for up to 18 months
D) COBRA rules allow continuation of health coverage in this situation for up to 29 months

Answer 1

COBRA rules allow Pat to continue her health insurance coverage for up to 18 months following a voluntary change from full-time to part-time status, as it constitutes a reduction in hours.

Step-by-step explanation:

If Pat voluntarily changes her status from full-time to part-time and her employer's group health plan covers her because of her employment status, and that status changes due to a reduction in hours (which may include a switch to part-time), COBRA continuation coverage may come into play.

Under COBRA (Consolidated Omnibus Budget Reconciliation Act), Pat has the right to choose to continue her health insurance coverage that she had before her hours changed. The correct statement regarding COBRA in Pat's situation is that COBRA rules allow continuation of health coverage for up to 18 months (Option C) when there is a reduction in the number of hours of employment.

The correct statement regarding COBRA in this situation is:

C) COBRA rules allow continuation of health coverage in this situation for up to 18 months.