Health Insurance Mastery Practice Exam

Under COBRA, the right to continue existing group health coverage is NOT available to an individual who:

1. Is terminated from employment

2. Is a covered dependent who reaches the age of ineligibility

3. Exceeds the maximum coverage period

4. Has not met the enrollment criteria

The correct answer is: Is a covered dependent who reaches the age of ineligibility

The right to continue existing group health coverage under the Consolidated Omnibus Budget Reconciliation Act (COBRA) primarily applies to individuals who experience certain qualifying events, such as employment termination or a reduction in work hours. However, this right is limited in specific scenarios. In the case of a covered dependent reaching the age of ineligibility, typically when a dependent no longer meets the criteria for coverage under the group health plan (such as aging out of a parents' plan), that individual does not have the right to continue coverage under COBRA. Once a dependent becomes ineligible due to age limits or similar criteria set by the health plan, they are no longer considered a qualified beneficiary under COBRA and therefore lose their right to elect for continued coverage. This distinction is critical because while COBRA is designed to provide a safety net for individuals who face loss of coverage due to employment-related changes, it does not extend to dependents when they no longer meet the prerequisites established by the group health insurance provider. This is an essential part of understanding both the limits of COBRA and the eligibility criteria for continuing health insurance coverage.