Q.- Open Enrollment is coming up for our next plan year. If an employee decides to drop coverage for 2014, do we have to give the employee a COBRA notice and a right to continue coverage under COBRA?
A.- No. A COBRA notice has to be provided when there is a qualifying event identified in the COBRA statute that causes a loss of coverage under the group health plan. Voluntarily dropping coverage at open enrollment is not a COBRA qualifying event There are 6 potential qualifying events upon which a notice must be provided if the event causes a loss of coverage and the employer is subject to COBRA:
• Death of covered employee
• Termination of employment or reduction of hours
• Divorce or legal separation
• Dependent child's ceasing to be a dependent under the plan
• Entitlement to Medicare
• Bankruptcy
