Question: CA Tex 3. What are the qualifying events that allow for COBRA benefits? What is the maximum benefit period for each qualifying event? Mini Case

 CA Tex 3. What are the qualifying events that allow for

CA Tex 3. What are the qualifying events that allow for COBRA benefits? What is the maximum benefit period for each qualifying event? Mini Case Scenario: Richard graduated from a state university with a Bachelor of Science degree in accounting. He has been employed at Knoth & Cartez, a small local accounting firm(50 employees) for almost seven years. He makes $31,000 per year. Richard has been married to Marianne for six years. She graduated from a private university with a Bachelor of Science degree in elementary education. She is employed as a fourth-grade teacher at Riverside Preparatory School. She makes $22,000 per year. Richard and Marianne have three children: Carlos, age four: and twin girls, Maria and Anna, age two. The Richards have the following insurance: Health Insurance: Health insurance is provided for the entire family by Knoth & Cartez. The family is covered by an HMO. Doctor's visits are $10 per visit, prescriptions are $5 for generic brands and $10 for other brands, and there is no co-payment for hospitalization insemigrivate accommodations. Private rooms are provided when medically necessary. For emergency treatment, a $50 co-payment is required. Life Insurance: Richard has a $50,000 group term life insurance policy through Knoth & Cartez. Marianne has a $20,000 group term policy through Riverside Preparatory School. The owners of the policies are Richard and Marianne, respectively, with each other as the respective beneficiary. Disability Insurance: Richard has disability insurance through the accounting firm. Short-term disability benefits begin for any absence due to accident or illness over six days and continue forup to six months at 80% of his salary. Long-term disability benefits are available if disability continues over six months. If Richard is unable to perform the duties of his own current position, the benefits provide him with 60% of his gross salary while disabled until recovery, death, retirement, or age 65 (whichever occurs first). All disability premiums are paid by Knoth & Cartez. Marianne currently has no disability insurance. Case Assumptions: Risk-free Interest Rate is 6% Expected inflation is 3% Ricard and Marianne both expect raises at 4% annually Spa Bulle Drop MacBook Pro esc Default B I U # $ % & ! 1 2 3 4 5 6 7

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