Does COBRA continuation apply if an employee is terminated for gross misconduct?

• A. Yes
• B. No
• C. Only if the employer elects
• D. Only for the spouse

Answer: (B)

COBRA continuation hinges on a qualifying event that causes loss of coverage. For the employee, involuntary termination can be a trigger, but there’s a crucial exception: termination for gross misconduct is not treated as a qualifying event. That means the employee cannot elect COBRA to continue coverage after being fired for gross misconduct. The same logic applies to spouses or dependents—they don’t automatically gain COBRA rights just because the employee was terminated for gross misconduct; their own qualifying events (like a death, divorce, or another proper trigger) would have to occur. So, COBRA does not apply in this situation.