Under COBRA, which statement about continuation coverage is true?

• A. It requires no premium
• B. It guarantees full employer subsidy
• C. It applies only to short-term disability
• D. It allows continued coverage for a terminated employee with some premium cost

Answer: (D)

COBRA lets a person keep their existing group health coverage for a limited time after a qualifying event, but only if they pay the premium themselves. That means a terminated employee can continue the same plan, provided they remit the required premium (often at or near the full cost of the plan plus a small admin fee). Coverage is not free and isn’t guaranteed to be subsidized by the employer, and COBRA isn’t limited to short-term disability—it applies to health coverage continuity after events like termination or loss of hours, with specific time limits.

So the statement that best describes continuation coverage is that a terminated employee can maintain coverage with some premium cost.