Who are considered qualified beneficiaries under COBRA?

• A. Only current employees
• B. The employee, the employee's spouse, and dependent children who were covered under the plan on the day before the qualifying event
• C. Only the employee's dependents
• D. Only the employer

Answer: (B)

The idea being tested is who can keep COBRA coverage after a qualifying event. Qualified beneficiaries are the people who were enrolled in the employer’s group health plan on the day before the event and who lose coverage because of that event. That includes the employee themselves, the employee’s spouse, and dependent children who were covered under the plan the day before. The employer isn’t a beneficiary and doesn’t qualify to receive COBRA continuation on its own. This setup lets families maintain health coverage temporarily while they arrange new coverage, typically for a limited period and with the required premium.