Under COBRA, what is the amount you must pay toward the plan?

Under COBRA, what is the amount you must pay toward the plan?

• A. 50%.
• B. 102%.
• C. 0%.
• D. 120%.

Answer: (B)

Under COBRA, when you elect continuation coverage after a qualifying event, you must pay the full cost of the plan plus a 2% administrative fee. So you’re paying 102% of the plan premium—the employer’s contribution is not required for COBRA, and the admin fee covers COBRA administration. That’s why 102% is the correct amount. The other figures don’t reflect the required 100% premium plus the 2% admin fee: 50% would underpay, 0% would be free, and 120% would overstate the amount.

Under COBRA, when you elect continuation coverage after a qualifying event, you must pay the full cost of the plan plus a 2% administrative fee. So you’re paying 102% of the plan premium—the employer’s contribution is not required for COBRA, and the admin fee covers COBRA administration. That’s why 102% is the correct amount. The other figures don’t reflect the required 100% premium plus the 2% admin fee: 50% would underpay, 0% would be free, and 120% would overstate the amount.