COBRA is short for Consolidated Omnibus Budget Reconciliation Act. It requires that continuation of group health, vision, dental and/or Medical Spending Account coverage be offered to you and/or your covered dependents if you are no longer eligible for coverage due to a qualifying event. Qualifying events include:
- The covered employee’s working hours are reduced from full-time to part-time
- The covered employee voluntarily quits work, retires, is laid off or is fired (unless the firing is due to gross misconduct)
- A covered spouse loses eligibility due to a legal separation or divorce
- A covered child no longer qualifies as a dependent.
Please note: An individual who loses coverage as a result of a Dependent Eligibility Audit is not eligible for continued coverage.