COBRA & Direct Premium Billing Members

In simple terms, voluntary termination happens when an employee chooses to leave their job, whether it’s by resigning, retiring, or stepping down from their position.

In simple terms, involuntary termination happens when an employee is let go from their job, whether it’s due to being fired, laid off, or any other reason where the employee didn’t choose to leave.

Let’s dive into reduction in hours of employment as a COBRA qualifying event.

This happens when an employee’s work hours are cut back to the point where they’re no longer considered full-time (often under 30 hours a week, depending on the employer’s policy). Because their status has changed, their health coverage could end or change as well.

When an employee passes away, their family members or dependents might lose their health coverage under the employer’s plan.

If the employee who passed away was covering family members or dependents on their health plan, those dependents may be eligible to continue their coverage under COBRA for up to 36 months. This gives them time to transition to other coverage options while keeping their health benefits intact during a tough time.

If an employee gets divorced or legally separated, their ex-spouse might lose coverage under the employee’s health plan.

When this happens, the former spouse (or sometimes a dependent child) can elect to continue their health coverage under COBRA, just like if they had lost coverage for another reason. They’ll be able to keep the same health benefits, but they’ll be responsible for paying the full premium on their own.

So, if you’re going through a divorce or legal separation, COBRA gives the ex-spouse the option to keep their coverage for up to 36 months, ensuring they’re not left without health insurance during a time of transition.

When an employee or their family member becomes eligible for Medicare (usually at age 65), they might lose eligibility for their employer’s health plan.

If you or a covered family member become eligible for Medicare, you can still choose to continue your employer’s health coverage through COBRA for up to 36 months. The key here is that while you can stay on your employer’s plan, you’re now eligible for Medicare, so you’ll have to weigh your options between continuing with COBRA or switching to Medicare for your health coverage.

This happens when a child ages out of their parent’s health plan, usually when they turn 26 (depending on the plan). Once they hit that milestone, they’re no longer considered a dependent under the employer’s health coverage.

If a child loses their status as a dependent (because of age, for example), they can elect to continue their coverage under COBRA for up to 36 months.

When an employee’s hours are reduced (typically to less than 30 hours per week, depending on the employer’s plan), they may no longer qualify for the company’s health insurance because they’re no longer considered a full-time employee.