Life & Health Insurance Exam (National Portion)Federal RegulationsMedium
A former employee, who was covered under their employer's group health plan, was terminated for gross misconduct. They inquire about their eligibility for COBRA continuation coverage. What is the standard COBRA eligibility for an employee terminated for gross misconduct?
- AThey are not eligible for COBRA continuation coverage.
- BThey are eligible for COBRA, but only for 6 months.
- CThey are eligible for 36 months of coverage if disabled.
- DThey are eligible for the full 18 months of coverage.
Show answer & explanationAnswer & explanation
Correct answer: A. They are not eligible for COBRA continuation coverage.
Under COBRA, employees terminated for gross misconduct are generally not eligible for continuation of coverage. This exception is a key limitation to COBRA's otherwise broad coverage requirements.
Why the other options are wrong
- B. There is no 6-month COBRA eligibility period specifically for gross misconduct; rather, it is a complete disqualification.
- C. 36 months is for other qualifying events, such as death of employee or divorce, not termination for gross misconduct.
- D. 18 months is the standard for qualifying events like voluntary termination or reduction in hours, but not gross misconduct.
COBRA Gross Misconduct Exception
Employees terminated due to gross misconduct are typically ineligible for COBRA continuation coverage. This is a significant exception to COBRA's general requirements.
- Gross misconduct is a specific disqualifying event.
- Employer must prove gross misconduct.
- No COBRA rights for the employee or their dependents.
Memory trick: COBRA has rules for when you get to 'SLITHER' into continued coverage.