A plan is permitted (but not required) to terminate a qualified beneficiary’s COBRA coverage prior to the end of the maximum coverage period in the following situations:
- the qualified beneficiary does not pay the required premium on time;
- the qualified beneficiary becomes covered under another group health plan after
- electing COBRA coverage;
- the qualified beneficiary becomes entitled to Medicare after electing COBRA;
- a qualified beneficiary who was disabled is determined by the Social Security Administration to no longer be disabled;
- the employer ceases to provide or maintain any group health plan for any of its employees;187 or
- for cause (such as for filing a fraudulent benefit claim).188
CREDITS: This is an excerpt from An Employer’s Guide to Employment Issues in Minnesota, provided by the Minnesota Department of Employment and Economic Development & Linquist & Vennum P.L.L.P., Tenth Edition, 2009. Copies are available without charge from the Minnesota Department of Employment and Economic Development, Small Business Assistance Office.
This post is also part of a series of posts covering the Continuation of Group Health and Life Insurance Coverage Law (COBRA). This information is not legal advice. You should consult with an experienced employment attorney before dealing with COBRA-related employment issues.
187 However, in an acquisition of a business or its assets, the buyer may be responsible to provide COBRA coverage to persons losing coverage as a result of the transaction.
188 29 U.S.C. § 1162(2)(B)-(E); 26 U.S.C. § 4980B(f)(2)(B)(ii)-(v); 42 U.S.C. § 300bb-2(2)(B)-(E).