1. What is COBRA? Who is responsible for COBRA? What are the
employers obligations? (Use source(s) other than the book to support
your answers. Be sure to cite your source(s).)
COBRA is The Consolidated Omnibus Budget Reconciliation Act, which gives
workers and their families who lose their health benefits the right to choose to
continue group health benefits provided by their group health plan for limited
periods of time. Circumstances like job loss, transition between jobs, death, divorce,
illness, and other life events qualify. The individual might, however, be obligated to
pay the entire premium for coverage. It is a temporary extension of coverage that
might otherwise be terminated. The employer is obligated to offer this continuation
to covered employees, but the employee can be charged the full premium that the
employer had previously covered. The employer has to give you the same coverage
as offered to other employees, but are not required to pay for it. The employer is also
obligated to let the employee know about the right to elect COBRA coverage. They
must also extend the coverage to all qualified beneficiaries of the employee.
However, that’s where their responsibility ends. The employee can be responsible for
up to 102% of premium costs (the two extra percent for administrative support
costs.) It’s a lot of responsibility on the employee, but it does provide health
