Q- My company is changing the number of work hours required for benefits eligibility. Previously, employees had to work 20 hours a week to be eligible for benefits. The requirement is being increased to 35 hours a week for benefits eligibility. Will individuals working between 20 and 35 hours who lose health coverage be entitled to elect COBRA continuation coverage?
A- No. COBRA coverage is offered if an individual loses coverage due to a COBRA qualifying event. A COBRA qualifying event includes a termination of employment, reduction of hours, divorce or legal separation, death of employee, dependent child ceasing to be a dependent, entitlement to Medicare, and bankruptcy. A change in plan terms that causes an individual no longer be eligible for coverage is not a COBRA qualifying event.