Termination about to happen: What are our obligations under federal COBRA?
Q. We are considering discharging an employee and are concerned about our obligations under COBRA. What does COBRA require?
A. The federal Consolidated Omnibus Reconciliation Act of 1985—commonly known as COBRA—requires private employers with 20 or more employees to provide covered employees (and their covered dependents) with the option to elect continued health care coverage for a specified period of time (usually 18 months) if there is a “qualifying event.”
A qualifying event under COBRA occurs when a covered employee is discharged or his or her hours are reduced and, as a result, he or she would lose health coverage but for COBRA. This does not apply if the employee was discharged for gross misconduct.
A qualifying event also occurs if, but for COBRA, a qualified beneficiary (such as a spouse or dependent child) would lose coverage due...(register to read more)