What constitutes a qualifying event for the employee under COBRA?

• A. Retirement with plan still active
• B. Voluntary resignation without loss of coverage
• C. Termination of employment (for any reason other than gross misconduct) or a reduction in hours that results in loss of coverage
• D. Change in work location that does not affect coverage

Answer: (C)

Under COBRA, a qualifying event is a change in employment status that causes the employee’s health coverage to end or be reduced. The employee qualifies for COBRA when there is termination of employment (for any reason other than gross misconduct) or a reduction in hours that results in loss of coverage. These events create a right to elect COBRA and continue coverage for a limited period.

Scenarios where coverage doesn’t end or isn’t reduced don’t trigger COBRA. Retirement while the plan remains active still has coverage, voluntary resignation without any loss of coverage doesn’t create a loss of coverage, and a change in work location that doesn’t affect coverage likewise doesn’t end or reduce the plan’s coverage.