What is the effect of divorce or legal separation on COBRA rights for the former spouse or dependents?

• A. It terminates COBRA rights for the former spouse immediately.
• B. It is a qualifying event for the former spouse/dependent, enabling COBRA continuation and potentially the extended 36-month period for certain scenarios.
• C. It has no effect on COBRA rights.
• D. It extends the COBRA period to 60 months for all dependents.

Answer: (B)

Divorce or legal separation is treated as a qualifying event under COBRA. This means the former spouse and any dependents who lose coverage due to the divorce can elect COBRA continuation rather than having their coverage end immediately. They can typically continue the plan for up to 36 months from the date of the divorce or separation (the clock starts at the event in many plans), and they must be offered the option and pay the premium. The 36-month maximum is the standard limit for this qualifying event, not a longer extension for all dependents.