AD Banker Comprehensive Practice Exam

Which of these is a common requirement for COBRA eligibility?

1. Full-time employment status

2. Previous enrollment in Medicare

3. Participation in a group health plan

4. Membership in a labor union

The correct answer is: Participation in a group health plan

A common requirement for COBRA eligibility is participation in a group health plan. COBRA, which stands for Consolidated Omnibus Budget Reconciliation Act, allows employees and their families to continue their group health insurance coverage for a limited period under certain circumstances after a qualifying event, such as job loss, reduction in hours, or other circumstances leading to a loss of health benefits. Individuals must have been enrolled in an employer-sponsored group health plan to qualify for COBRA coverage. This eligibility typically extends to employees of organizations that have at least 20 full-time employees. The focus on group health plans ensures that individuals can maintain the same level of insurance and benefits they previously had while employed, thus emphasizing the significance of having been a participant in the group plan prior to the event that triggered eligibility for COBRA. This requirement distinguishes COBRA from other possible forms of health coverage, as it specifically pertains to those who were part of a group plan, rather than individual plans or other forms of coverage, ensuring that the continuity of benefits is upheld.