COBRA Administration

Plans covering the following are generally considered health plans under COBRA:

• Medical or surgical care
• Prescription drugs
• Dental care
• Vision care
• Hearing care
• Drug and mental health treatment

A qualifying event must: a) result in a loss of coverage; and b) be a result of a specified event:

• Termination of employment or reduction of covered employee’s hours (other than by reason of gross misconduct)
• Death of a covered employee
• Divorce or legal separation of a covered employee from the covered employee’s spouse
• A dependent child ceasing to be a dependent child under the terms of the health plan 
• An employer’s filing of bankruptcy under Chapter 11

A qualified beneficiary is any individual who, on the day before the qualifying event, is covered under a health plan by virtue of being:

• An employee
• A spouse of a covered employee
• A dependent child of the covered employee
• Any child who is born to or placed for adoption with a covered employee during a period of COBRA continuation coverage.

Each qualified beneficiary has an independent right to elect COBRA. For example, if an employee and their spouse were covered under the health plan on the day before the qualifying event, the spouse may elect COBRA even if the employee declines coverage.

*Please note that domestic partners do not meet COBRA’s definition of a spouse or dependent and even where state law recognizes domestic partners, domestic partners are not qualified beneficiaries.