Who is a qualifying beneficiary?

• A. An individual who is covered by the employer's group health plan on the day before a qualifying event. They are eligible to receive COBRA benefits
• B. An individual who becomes eligible for a new employer plan
• C. A plan sponsor
• D. An insurer

Answer: (A)

The concept here is who can continue coverage under COBRA after a triggering event. A qualifying beneficiary is someone who was covered under the employer’s group health plan on the day before the qualifying event and who loses that coverage because of the event. This includes the employee and their covered dependents (spouse and/or dependent children) who were enrolled immediately prior to the event. They’re the ones eligible to elect COBRA continuation.

Becoming eligible for a new employer’s plan isn’t COBRA eligibility, because COBRA is about continuing coverage from the prior employer’s plan after loss of that coverage. The plan sponsor and the insurer aren’t individuals who receive COBRA benefits—they’re the administrator/issuers involved in the coverage, not beneficiaries.