Fact Pattern 12-2 Pace is 64 years old and would like to retire from a job at a large accounting firm. Pace, however, is concerned about health insurance and would not be eligible for Medicare benefits until age 65. In addition, due to some serious health conditions, obtaining insurance in the private market is unlikely. Pace has good health insurance at the accounting firm and is considering putting off retirement in order to keep it. Refer to Fact Pattern 12-2. Assuming Pace exercises the rights under federal law to maintain current insurance with the accounting firm upon retirement, which of the following is true regarding the premiums?

A The employer would be required to pay all premiums.

B The employer would be required to pay for one-half of the premium, and Pace would be required to pay for one-half.

C Pace and the employer would pay the premium based upon whatever arrangement was in effect during Pace's employment.

D Pace would have to pay all premiums.