How Much Must an Employee Pay in Order to Continue

question 46

Multiple Choice

How much must an employee pay in order to continue health benefits under the Consolidated Omnibus Budget Reconciliation Act (COBRA) ?

• A)One-half the policy premiums.
• B)All the policy premiums,plus up to a 5 percent administrative fee.
• C)Only the percentage of policy premiums the employee paid while he or she was employed.
• D)All the policy premiums,plus up to a 2 percent administration fee.
• E)Nothing,since COBRA requires the employer to pay for all health insurance-related premiums.

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Definitions:

Book Value

The value of a company's asset as it appears on the balance sheet, calculated as the cost of the asset minus accumulated depreciation.

Merchandise Inventory

Goods or products that a retailer, wholesaler, or distributor holds for the purpose of selling to customers.

Gain on Realization

Profit recognized from selling an asset for more than its book value.

Loss or Gain

The financial result from business transactions, investments or other financial events, indicating a profit (gain) or a deficit (loss).