Who is a qualified beneficiary?

• A. An individual who is covered by an employer's group health plan on the day before a qualifying event. Individuals who are qualified beneficiaries are eligible to receive COBRA benefits
• B. An employee with a long tenure
• C. A plan administrator
• D. An employer's representative

Answer: (A)

Under COBRA, a qualified beneficiary is someone who was covered under the employer’s group health plan on the day before a qualifying event, so they may elect continuation coverage. The option correctly describes an individual who was enrolled in the group health plan right before the event, which makes them eligible for COBRA. This can include the employee, their spouse, or dependent children who were covered. Plan administrators and an employer’s representative aren’t beneficiaries themselves, and simply having long tenure doesn’t determine COBRA eligibility—the crucial factor is being covered under the plan immediately before the qualifying event.