Q.- One of our employees who had family coverage just found out he was not legally married. We will terminate the “wife” from coverage, but do we have to offer her COBRA? If someone never should have been covered under the plan, do we still have to offer COBRA?
A.- COBRA must be offered to individuals covered under the health plan if they experience a qualifying event that results in the loss of coverage. A qualifying event includes termination or reduction of hours, divorce or legal separation, death of a covered employee, Medicare eligibility for a covered employee, or loss of dependent status. Whether someone “never should have been covered” is not considered when offering COBRA. If they have coverage and experience a qualifying event, COBRA is offered.
Voluntarily removing someone from coverage who never should have been covered is not one of the recognized qualifying events so no COBRA election has to be offered in this situation.
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This article is for informational purposes only and is not intended as legal, tax, or benefits advice. Readers should not rely on this information for taking (or not taking) any action relating to employment, compliance, or benefits. Always consult with a qualified professional before making decisions based on this content.
