Which statement is true about COBRA beneficiaries?

• A. Non-employees who participate in the group health plan can be qualified beneficiaries.
• B. Only employees can be qualified beneficiaries.
• C. A spouse cannot be a qualified beneficiary.
• D. Directors who are employees are considered non-employees.

Answer: (A)

The main idea is who counts as a qualified beneficiary under COBRA. A qualified beneficiary is anyone who was covered by the group health plan on the day before a qualifying event and would lose that coverage because of the event. That includes not only the employee but also the employee’s spouse and dependent children, even though they are not employees themselves. So non-employees who are covered under the plan, such as a spouse or dependent child, can be qualified beneficiaries and eligible to elect COBRA continuation coverage.

The other statements miss this point: only considering employees excludes spouses and dependent children who are covered but not employees; saying a spouse cannot be a qualified beneficiary is incorrect; and the note about directors being non-employees misstates how COBRA eligibility works, since eligibility is about coverage status and the relationship to the employee, not simply job title.