Question

HVAC Services Inc. employs two hundred workers. Workers who lose their jobs with HVAC may have a right to continued health-care coverage under the company’s group plan. If so, the premiums for the continued coverage are paid by
a. the employer.


b. the still-employed workers.


c. the unemployed workers.


d. the federal government.

Answer 1

Answer:

The correct answer is letter "C": the unemployed workers.

Explanation:

Under the Consolidated Omnibus Budget Reconciliation Act (COBRA) passed in 1985, employers who hire 20 or more workers are subject to provide healthcare benefits up to 36 months to their employees after termination of employment caused because of different reasons. In those cases, the ex-workers are responsible for the payment of their premiums.