Which action is described as typically a qualifying event for COBRA?

• A. Layoff
• B. Voluntary resignation for a new job
• C. Promotion
• D. Annual birthday

Answer: (A)

COBRA qualifying events are events that result in the loss of eligibility for employer-sponsored health coverage, allowing a person to elect to continue that coverage for a limited period.

Being laid off is a classic qualifying event because it directly ends the employee’s access to the employer’s health plan. Once the employment ends and coverage under the plan would ordinarily terminate, the person becomes eligible to elect COBRA to keep the same health coverage for a while longer.

In contrast, an annual birthday doesn’t affect eligibility for coverage, and a promotion usually doesn’t cause a loss of coverage (it might change costs or benefits but not end coverage). A voluntary resignation for a new job could also lead to a loss of current coverage, but layoff is the most straightforward, commonly cited example of a qualifying event.