<i>Dear Workforce</i> What Do We Need to Know About COBRA When Someone Is Fired for Misconduct
May 4, 2010
A: Yes. However, for purposes of federal COBRA, if the termination of employment is due to gross misconduct of the employee, the termination is not a qualifying event, and the employee and other family members losing health coverage by reason of the employee's termination of employment are not eligible for COBRA continuation coverage.
A. An individual must be an assistance-eligible individual to [receive] the premium reduction. Under the American Recovery and Reinvestment Act of 2009, an assistance-eligible individual is a qualified beneficiary as the result of an involuntary termination that occurred between September 1, 2008, and March 31, 2010, is eligible for COBRA continuation coverage at any time during that period, and elects the COBRA continuation coverage. To be a qualified beneficiary, the individual must be covered under the group health plan on the day before the involuntary termination (except in the case of a child born to or adopted by a covered employee during a period of COBRA continuation coverage, or in certain circumstances where coverage was wrongfully denied the individual).