Which statement accurately describes how premiums are handled for State Continuation?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $24.99Unlock all

Prepare for the North Carolina Health Insurance Test. Study with flashcards and multiple choice questions; each comes with hints and explanations. Get ready for your assessment!

Multiple Choice

Which statement accurately describes how premiums are handled for State Continuation?

Explanation:
State Continuation lets a former employee keep the group health plan for a limited period, but the cost is borne by the former employee. They pay the full group premium—the rate that would have applied if they were still covered—plus a 2% administrative fee to cover the cost of administering the continuation. This mirrors COBRA-like arrangements, where the insured carries the ongoing cost rather than the employer subsidizing it. The other options don’t fit because the employer doesn’t pay the continuation premium, the admin fee is required, and coverage isn’t provided for free.

State Continuation lets a former employee keep the group health plan for a limited period, but the cost is borne by the former employee. They pay the full group premium—the rate that would have applied if they were still covered—plus a 2% administrative fee to cover the cost of administering the continuation. This mirrors COBRA-like arrangements, where the insured carries the ongoing cost rather than the employer subsidizing it. The other options don’t fit because the employer doesn’t pay the continuation premium, the admin fee is required, and coverage isn’t provided for free.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy