When the employee dies, how are COBRA rights for the spouse and dependents affected?

• A. It creates a qualifying event that allows the spouse and dependents to elect COBRA for up to 18 months, extendable to 36 months if a second event occurs.
• B. It terminates COBRA rights for the spouse and dependents immediately.
• C. It resets the continuation period to 12 months with no extensions.
• D. It has no effect on COBRA rights.

Answer: (A)

When the employee dies, that death is a COBRA qualifying event for the spouse and dependents. This means they have the right to elect COBRA to continue the employer’s health coverage. The usual continuation period starts at 18 months from the date of the qualifying event. However, if a second qualifying event occurs during that initial period, the total continuation can be extended up to 36 months. This gives the surviving spouse and dependents the option to keep coverage longer in light of ongoing eligibility changes, though premiums must be paid to maintain the coverage.