D) 18 months

A) 36 months

Incorrect. Try again!

B) 24 months

Incorrect. Try again!

C) 12 months

Incorrect. Try again

D) 18 months

Correct!

The employer must offer continued health plan coverage for 18 months after termination of employment or reduction in hours of employment, other than for "gross misconduct." If termination is due to disability, coverage must be continued for 29 months.

Also, under COBRA, the employer must generally provide the option to continue an employee's existing health plan coverage (including dependent coverage) for 36 months after the following "qualifying events":

• Death of the employee;
• Divorce or legal separation of the covered employee (coverage continues for the former spouse and dependents);
• The employee's entitlement to Medicare benefits;
• A bankruptcy proceeding under the United States Code, where the employee retired from the employer; and
• A child ceasing to be a dependent for plan purposes

Continuation coverage can be terminated before the 36, 29, or 18 month period if

• The employer terminated its health plan for all employees;
• The employee or beneficiary fails to pay his or her share of the premium; or
• The employee or beneficiary becomes covered under any other plan providing medical care. However, if the new plan excludes a pre-existing condition, the employee m ust be allowed to continue coverage under the prior plan for the full COBRA period.

In 2009, the federal government offered laid-off workers a subsidy that helped reduce the cost of COBRA coverage by 65 percent. That subsidy program expires Sept. 1, 2011. [See Goodbye, COBRA subsidy]