BAS Blog

Question of the Week

Written by mroshkoff@basusa.com | Jan 24, 2013 11:58:07 AM

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.