Each of these situations is what COBRA calls a “Qualifying Event” that may entitle the departing employee and any enrolled spouse or dependent children to COBRA coverage. However, a departing employee is not eligible for COBRA if he or she was terminated for “gross misconduct.” Departing employeesand his/her spouses and dependent children, if they were enrolled in your health plan, are eligible for COBRA continuation coverage due to a voluntary or involuntary termination of employment, except for gross misconduct. The term "gross misconduct" is not specifically defined in COBRA or in regulations under COBRA.
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