Which of the following options states how the Patient Protection and Affordable Care Act (PPACA) amended the Consolidated Omnibus Budget Reconciliation Act (COBRA)?

Which of the following options states how the Patient Protection and Affordable Care Act (PPACA) amended the Consolidated Omnibus Budget Reconciliation Act (COBRA)?

A. Increased the qualifying events that may permit 36 months of coverage

B. Extended the eligibility time period for employee COBRA applications

C. Increased the list of who is considered a qualified dependent

D. Required coverage of an employee’s adult children up to age 26.

View Answer

Answer: D

Explanation:

Under PPACA (also called the Affordable Care Act), plans that offer coverage to children on their parents’ plan must make the coverage available until the adult child reaches the age of 26.

What You Need To Know about COBRA: COBRA requires temporary health continuation coverage to be offered to covered employees, their spouses, their former spouses, and their dependent children when group health coverage would otherwise be lost due to certain specific events. These qualifying events include the death of a covered employee, termination or reduction in the hours of a covered employee’s employment (for reasons other than gross misconduct,) divorce or legal separation from a covered employee, a covered employee’s becoming entitled to Medicare, and a child’s loss of dependent status (and therefore coverage) under the plan.

COBRA generally applies to all group health plans by private-sector employers with at least 20 employees or by state and local governments. It does not apply to plans sponsored by the Federal Government. Qualified individuals may be required to pay the entire premium for coverage up to 102% of the cost to the plan.

COBRA and HIPAA are amendments to ERISA.