Question

Xavier is enrolled in his employer's group health plan. When he reaches the age of 65, he will no longer be eligible for group coverage. Which of the following is true?

Select one:
a. COBRA requires by law that Xavier may continue coverage under the group plan indefinitely.
b. HIPAA requires that Xavier be allowed to remain on the group coverage for 18 months.
c. Xavier must be permitted to convert his group coverage to individual coverage within 31 days of his ineligibility under the group plan.
d. Xavier may remain on the group coverage indefinitely as long as he pays a higher premium.

Answer 1

Xavier must be allowed to convert his group health plan to individual coverage within 31 days of losing eligibility, as reaching the age of 65 makes him eligible for Medicare, not continuation of group coverage under COBRA or HIPAA.

Step-by-step explanation:

The correct answer to the question is c. Xavier must be permitted to convert his group coverage to individual coverage within 31 days of his ineligibility under the group plan. Neither COBRA nor HIPAA allows for indefinite continuation of group coverage after reaching the age of 65 and losing eligibility. Upon reaching 65, individuals are typically eligible for Medicare, which provides health insurance to all those over age 65. Additionally, the Patient Protection and Affordable Care Act requires most Americans to have health insurance and prohibits the denial of coverage for preexisting conditions, which helps to mitigate the adverse selection problem.