DECA Human Resources Management Practice Exam

Under which regulation can employees continue to pay for group health benefits after losing them due to unemployment?

1. Benchmark Job

2. COBRA

3. Benefits

4. Buyout

The correct answer is: COBRA

The regulation that allows employees to continue paying for group health benefits after losing them due to unemployment is COBRA, which stands for the Consolidated Omnibus Budget Reconciliation Act. This federal law requires that group health plans provide covered employees, their spouses, and dependent children the right to continue their health insurance coverage for a limited period after certain qualifying events, such as job loss or reduced hours. Under COBRA, individuals can maintain their health insurance coverage for up to 18 months (or longer under certain circumstances) by paying the full premium, which includes both their contribution and any portion that was previously covered by the employer. This provision is crucial for helping individuals transition during periods of unemployment, ensuring they do not lose access to necessary medical care during a challenging financial time. The other choices do not pertain to the extension of health benefits in the same way that COBRA does. For instance, "Benchmark Job" typically relates to job evaluation and compensation standards, while "Benefits" is a broader term that does not specify any particular type of regulation. "Buyout" usually refers to a financial arrangement wherein an employee might receive a lump sum in exchange for leaving a company, which does not inherently provide continuation of health benefits.