In what situation might an employee qualify for COBRA coverage?

An employee may qualify for COBRA coverage in the event of a reduction in work hours. COBRA (Consolidated Omnibus Budget Reconciliation Act) provides the right to continue group health benefits in certain situations where coverage would otherwise end, particularly for employees, their spouses, and dependent children. A reduction in work hours can lead to a loss of health insurance eligibility, triggering the right to elect continuation coverage under COBRA. This option ensures that individuals facing a decrease in their work hours can maintain health insurance for a limited time, allowing them to manage any potential gaps in coverage while they seek further employment or resolution of their situation.

In contrast, voluntary resignation typically does not qualify for COBRA since the employment termination was initiated by the employee. A transfer to a different job role within the same company would generally not affect health insurance eligibility as long as the new role meets the eligibility criteria for the group plan. Pursuing further education is a personal decision that does not directly impact an employee’s eligibility for health benefits provided by their employer, thus not qualifying for COBRA under this circumstance.