What employment reason can make an employee ineligible to receive COBRA coverage?

• A. Gross misconduct
• B. Voluntary resignation
• C. Reduction in hours
• D. Retirement

Answer: (A)

COBRA continuation is available when an employee loses group health coverage due to a qualifying event. A major exception is gross misconduct: if the employee is terminated for gross misconduct, the plan may deny COBRA coverage. The other scenarios—voluntary resignation, reduction in hours, and retirement—are typically treated as qualifying events that result in a loss of coverage, making COBRA continuation available (assuming premiums are paid). So the employment reason that can render someone ineligible is gross misconduct, while the others can still lead to COBRA coverage.