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PHR Human Resources Exam Prep

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A manager who you know fairly well, and with whom you have a good working relationship, leaves a voice mail message for you asking you to please call her back about a benefits question. You return her call, and she comes down to your office to speak with you in person. She explains that her former assistant, who left nearly a year and a half ago to go back to college, is about to run out of COBRA. She explains to you that he still is one semester away from earning his degree and can’t get decent health insurance through the college plan. She asks if you wouldn’t mind leaving him on COBRA, just for a few more months. You know that you’ve got to formulate a response that accomplishes a number of things, including providing accurate facts. Which of the following facts would be the most appropriate to share?
  1. You inform the manager that, under COBRA, former employees who are full-time students at the time that COBRA runs out are entitled to an extension for as long as the former employee remains a full-time student (up to 18 months).
  2. You inform the manager that although COBRA only requires an employer to continue benefits coverage for 18 months, the employer has the option to extend COBRA benefits for an additional 18 months.
  3. You inform the manager that COBRA can be continued for another 18 months, as long as the employee pays the company 110% of the monthly premium costs.
  4. You inform the employee that COBRA cannot be continued beyond 18 months in this particular situation, but there are other situation that would warrant an extension and that you would be happy to share that information with her.
Explanation
Answer - D - According to the facts you have been given, COBRA can’t be extended, but it’s also true that there may be other facts of which you’re not aware. You should be helpful, factual, and accurate.

Key Takeaway: There is no provision under COBRA that states that an extension beyond 18 months is available for former employees who are full-time students. COBRA does not allow employers to continue benefits coverage beyond legally specified time frames. COBRA allows for participation to continue for up to another 18 months only under specific circumstances (and those circumstances cannot be “bought” with a 10% surcharge).
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