Premiums for State Continuation are paid by former employee: which statement is correct?

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Prepare for the North Carolina Health Insurance Exam. Study with practice test questions related to accident and sickness insurance. Understand the format and expectations to excel in your licensing exam.

Multiple Choice

Premiums for State Continuation are paid by former employee: which statement is correct?

Explanation:
State Continuation is a COBRA-like option that lets a former employee keep the group health plan for a limited time, but the enrollee handles the cost. The rule is that the former employee pays the full group premium plus a 2% administrative fee to cover processing and administration. That’s why the statement stating the full group premium plus 2% is the accurate one. Options suggesting only the premium, or half of it, or the employee paying everything without the admin fee, don’t reflect how state continuation charges are structured.

State Continuation is a COBRA-like option that lets a former employee keep the group health plan for a limited time, but the enrollee handles the cost. The rule is that the former employee pays the full group premium plus a 2% administrative fee to cover processing and administration. That’s why the statement stating the full group premium plus 2% is the accurate one. Options suggesting only the premium, or half of it, or the employee paying everything without the admin fee, don’t reflect how state continuation charges are structured.

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