COBRA Compliance Quiz

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COBRA Compliance Quiz 

1. Does the federal government ever pay a portion of the COBRA premium?

• A. Yes, Medicaid is required to pay COBRA premiums in certain states
• B. Yes, the Trade Act of 2002 allows for a 65% refundable or advanceable tax credit
• C. Never
• D. Both A & B

2. The 60 days to report a divorce, legal separation or a dependent child ceasing to be a dependent runs from what date?

• A. Date of the Qualifying Event
• B. Later of date of the event or date the event is reported to employer
• C. Later of date of the event or the loss of coverage date
• D. Date event is reported to employer

3. Can an individual who was not covered the day before the Qualifying Event be added to the COBRA plan?

• A. Never
• B. Only during Open Enrollment
• C. Anytime an active employee can add a dependent
• D. Only during Special Enrollment

4. If a plan covers domestic partners, are they eligible for COBRA when the employee has a Qualifying Event?

• A. Yes, if state law allows it
• B. Yes, only if the employee themselves elect COBRA
• C. Generally no, federal COBRA does not recognize domestic partners as legal spouses
• D. Yes, if the plan allows them to be covered in the first place

5. When does the COBRA time frame (18, 29 or 36 months) begin?

• A. The date of the Qualifying Event
• B. The date the employer mails the notice
• C. The loss of coverage
• D. The date Qualified Beneficiary elects

6. How often can a premium be increased for a Qualified Beneficiary during the COBRA time frame?

• A. Anytime the employer increases the premium for active employees
• B. Once during the COBRA time frame (18, 29 or 36 months)
• C. If the Qualified Beneficiary pays late more than once
• D. Once in a 12-month determination period

7. When should COBRA be offered to an employee taking time off due to workers’ compensation?

• A. After paid time off (vacation or sick leave)
• B. After FMLA
• C. Not until the workers’ compensation case is closed
• D. A or B

8. Do foreign based employees count toward the 20 employee count for a U.S. based employer?

• No, employers should only count employees who live in the U.S.
• Yes, if they are covered on a U.S. based plan
• Yes, regardless of their eligibility for the U.S. based plan
• No, not if they don’t receive U.S. dollars

9. Can an employer terminate a Qualified Beneficiary for paying less than the full COBRA premium?

• No, the employer has to accept it and eat the rest
• Yes, if the Qualified Beneficiary has sent in less more than once
• Yes, if it is short more than $50 or 10% or the premium
• No, the employer can add the shortage on to the next month’s bill

10. Is there a maximum COBRA penalty for violations?

• Yes, your liability stops at $1,000,000.00
• Yes, you are not liable if you are self-insured
• No, employers are liable for ANY fines and penalties
• Yes, $10,000.00

So, how did you do? Not perfect? Anything less than 100% compliant means you're vulnerable.

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