Which workers are covered?

• A. Anyone employed by the employer.
• B. Only those with a pre-existing relationship to the plan.
• C. A qualified beneficiary who is covered by the employer's group health plan and has a relationship with the employer affected by a qualifying event.
• D. Only salaried employees.

Answer: (C)

COBRA coverage is available only to those who were actually enrolled in the employer’s group health plan and would lose that coverage because of a qualifying event. In other words, you must be a qualified beneficiary under the plan and have a relationship with the employer that is affected by a qualifying event (such as termination of employment, a reduction in hours, death, divorce, or a dependent aging out). Employees, their spouses, and dependent children who would lose coverage due to such an event are eligible for COBRA continuation. It isn’t about being any worker at the company or about salary status; it’s about being a plan beneficiary who loses coverage because of a qualifying event.