COBRA when eligibility lost?

Question:

How does COBRA work when someone loses their eligibility for coverage?

Answer:

Reduction in hours is a COBRA trigger.

An employee who loses his or her eligibility for employer-sponsored coverage but remains employed by the company must be given the opportunity, through extension of COBRA benefits, to enroll in continuing coverage.

Keep in mind that if they pass their eligibility testing in a subsequent measurement period, the company would then be required to make that employee an offer of employer-sponsored coverage and the employee can then elect to drop COBRA coverage.

 

This Q&A was first published by ACA Insights' Helen Karakoudas on September 28, 2016 in a LinkedIn Pulse article titled "In the world of ACA compliance, every day should be Ask a Stupid Question Day."