COBRA coverage is available when a qualifying event causes an employee or dependent to lose group health insurance. The event must result in a loss of coverage under the plan’s normal rules.
🔹 Common Qualifying Events:
For Employees:
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Voluntary or involuntary termination of employment (except for gross misconduct)
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Reduction in hours that causes loss of eligibility (e.g., going part-time)
For Spouses and Dependents:
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Divorce or legal separation from the covered employee
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Death of the covered employee
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Covered employee becomes eligible for Medicare
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Dependent child ages out of eligibility under the plan (usually at age 26)
To qualify for COBRA, the individual must have been enrolled in the group plan on the day before the event, and the employer must be subject to COBRA rules.
🧠 Important Note:
The qualifying event must cause the loss of coverage. If coverage is lost for another reason (like nonpayment of premiums), COBRA may not apply.