Florida 2-15 Life, Health and Variable Annuity AgentFlorida Laws and Regulations Specific to Health InsuranceHard
A Florida resident is employed by a non-profit organization that provides group health insurance. Under which of the following circumstances would this employer NOT be required to offer COBRA continuation coverage?
- AThe employee was terminated for gross misconduct.
- BThe employer has fewer than 20 employees.
- CThe employee voluntarily resigned.
- DThe employer has 25 employees.
Show answer & explanationAnswer & explanation
Correct answer: A. The employee was terminated for gross misconduct.
COBRA generally requires continuation coverage for most qualifying events, including voluntary resignation and termination for reasons other than 'gross misconduct'. If an employee is terminated for gross misconduct, the employer is not required to offer COBRA.
Why the other options are wrong
- B. If an employer has fewer than 20 employees, they are exempt from federal COBRA, but may be subject to Florida Mini-COBRA.
- C. Voluntary resignation is a qualifying event for which COBRA must be offered.
- D. An employer with 25 employees is subject to federal COBRA.
COBRA Gross Misconduct Exception
Under COBRA, an employer is not required to offer continuation coverage if the employee was terminated due to 'gross misconduct'.
- A narrow exception to COBRA requirements.
- Gross misconduct is generally defined as severe wrongdoing.
- Employer must prove gross misconduct if challenged.
Memory trick: COBRA covers many events, but not gross misconduct's stains.