If a dependent loses eligibility, what happens to their COBRA continuation rights?

• A. They may continue for 12 more months
• B. Continuation rights end when loss of dependent status occurs
• C. They automatically convert to another plan
• D. They are exempt from premium payments

Answer: (B)

Continuing COBRA coverage is tied to remaining eligible as a dependent. When a dependent loses eligibility, the qualifying event that allowed COBRA to be offered effectively disappears, so the continuation rights terminate at that moment. In other words, once the person is no longer eligible as a dependent under the plan, there’s no basis to keep COBRA coverage going. If they need coverage after that point, they’d have to pursue a different route outside COBRA, such as another eligible plan, rather than extending COBRA itself.