Q.- We are an employer with several locations. We are no longer going to offer health coverage at one of the locations. Is this a COBRA qualifying event that will allow employees to continue health coverage?
A.- No. An employer stopping health coverage is not a COBRA qualifying event. An individual is entitled to a COBRA election if he or she experiences a COBRA qualifying event that causes a loss of coverage.
The qualifying events for employees are:
- Voluntary or involuntary termination of employment for reasons other than gross misconduct
- Reduction in the number of hours of employment
The qualifying events for spouses are:
- Voluntary or involuntary termination of the covered employee's employment for any reason other than gross misconduct
- Reduction in the hours worked by the covered employee
- Covered employee's becoming entitled to Medicare
- Divorce or legal separation of the covered employee
- Death of the covered employee
The qualifying events for dependent children include all those for spouses, plus:
- Loss of dependent child status under the plan rules
The situation you describe does not fit within any of the COBRA qualifying event reasons.
