When does COBRA coverage become effective in the case of Bob's unpaid leave?

COBRA coverage, which stands for the Consolidated Omnibus Budget Reconciliation Act, provides continuation of health coverage under certain circumstances when an employee experiences a qualifying event that results in loss of health benefits. In the context of unpaid leave, COBRA coverage typically becomes effective upon the termination of the employee's health insurance benefits due to a qualifying event, rather than immediately on the date of the leave.

Given the scenario, if Bob's unpaid leave leads to a reduction or termination of health benefits, COBRA coverage would begin from the date those benefits ceased. For instance, if Bob's health insurance ended on September 5 due to the unpaid leave, COBRA coverage would then become effective on that same date, allowing Bob to elect to continue his health coverage under COBRA starting from when benefits were lost.

This means that September 5 is the correct choice for when COBRA coverage commences, providing continuity of care for Bob as he transitions during this period of unpaid leave. The other dates provided would not align with the date his benefits ceased and therefore would not represent the effective start date for COBRA coverage.