Question

Which statement is incorrect regarding COBRA?

1) Coverage continues for 29 months for individuals receiving Social Security disability.
2) The employee or beneficiary must answer notification of an employee's right to continue coverage within 90 days, if coverage is elected.
3) Premiums for an employee disabled at time of termination may be increased to 150.
4) The employer may require the former employee or beneficiary to pay an amount equal to 102.

Answer 1

The incorrect statement regarding COBRA is that premiums for an employee disabled at the time of termination may be increased to 150.

Step-by-step explanation:

The statement that is incorrect regarding COBRA is option 3: Premiums for an employee disabled at the time of termination may be increased to 150.

COBRA, which stands for Consolidated Omnibus Budget Reconciliation Act, is a federal law that allows employees and their dependents to continue receiving the same group health insurance coverage after job loss or a change in work status. Under COBRA, disabled individuals can continue coverage for up to 29 months if they are receiving Social Security disability benefits. The employee or beneficiary must elect coverage within 60 days of receiving the COBRA notification and pay the premium, which may be increased by a maximum of 102% to cover administrative costs.

Therefore, option 3 is incorrect as it states that premiums for an employee disabled at the time of termination may be increased to 150, which is not accurate.