According to COBRA, what must be true regarding a terminated employee's benefits?

Under COBRA (Consolidated Omnibus Budget Reconciliation Act), terminated employees are entitled to continue their group health insurance benefits for a limited time after losing their job or experiencing a reduction in hours. The key point of this regulation is that the benefits provided under COBRA must be the same as those that the employee was receiving while employed. This ensures that the terminated employee does not lose access to the same level of care and coverage they previously had.

Furthermore, the premiums for COBRA coverage cannot exceed 102% of the cost of the plan for active employees, which includes the employer’s contribution and an additional 2% to cover administrative costs. This provision allows for continuity of care without imposing a significant financial burden on the employee, making them responsible for the full premium plus a small administrative fee.

The other options do not align with the provisions laid out by COBRA. Benefits cannot be reduced significantly, they cannot be limited to only three months, and they cannot be discontinued at any time in a way that undermines the rights granted by COBRA. This framework is designed to protect employees during transitions and ensure they have access to necessary health coverage.