Who are not counted as employees for COBRA purposes?

• A. Self-employed people, independent contractors, and corporate directors.
• B. All interns and students.
• C. Part-time workers only.
• D. Temporary workers only.

Answer: (A)

COBRA eligibility hinges on who counts as an employee of the employer that sponsors the group health plan. For COBRA purposes, an employee is someone on the employer’s payroll who receives wages and is under the employer’s control. Self-employed individuals, independent contractors, and corporate directors not paid through the employer’s payroll are not counted as employees for COBRA. Because they aren’t considered employees in this context, they’re not generally eligible for COBRA continuation under the employer’s plan.

Interns, students, part-time workers, or temporary workers can be employees for COBRA if they are on the payroll and treated as employees under the plan. The key factor is payroll status and the relationship to the employer, not the label of the role.