Under COBRA, a terminated employee's benefits must be the same and the premium cannot exceed what percentage?

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Multiple Choice

Under COBRA, a terminated employee's benefits must be the same and the premium cannot exceed what percentage?

Explanation:
Under COBRA, continuation coverage must be identical to the coverage the employee would have if still employed, including the same benefits and limits. The premium the former employee can be charged cannot exceed 102% of the plan’s total cost to the employer for that coverage, which covers the full cost of the benefits plus up to a 2% administrative fee. So, the former employee may be billed at most the group rate plus 2%. For example, if the plan costs the employer $500 per month, the maximum COBRA premium would be $510.

Under COBRA, continuation coverage must be identical to the coverage the employee would have if still employed, including the same benefits and limits. The premium the former employee can be charged cannot exceed 102% of the plan’s total cost to the employer for that coverage, which covers the full cost of the benefits plus up to a 2% administrative fee. So, the former employee may be billed at most the group rate plus 2%. For example, if the plan costs the employer $500 per month, the maximum COBRA premium would be $510.

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