Which events would ordinarily end coverage under ordinary circumstances (before COBRA extension)?

• A. Voluntary resignation by the employee.
• B. Termination or layoff.
• C. A change in job title.
• D. A temporary leave of absence.

Answer: (B)

Under a group health plan, coverage is tied to the employee’s active status. When someone is no longer an employee, the employer plan generally ends for that person, unless COBRA or another provision allows continuation. The classic event that ends coverage in ordinary circumstances is termination or layoff, because those outcomes end the employment relationship and with it the employer’s health plan coverage. A change in job title does not terminate employment, so coverage typically continues. A temporary leave of absence also doesn’t automatically end employment, and many plans let the employee keep coverage if premiums are kept up or if the leave is approved under plan rules. So termination or layoff is the event that ordinarily ends coverage before COBRA.