Ending Health Coverage in Anticipation of a Qualifying Event

COBRA Coverage

Understanding COBRA Qualifying Events

What Is a Qualifying Event?

List of Accepted Qualifying Events

  • Termination of the covered employee’s employment or a reduction of hours
  • Divorce (or legal separation) from the covered employee
  • Death of the covered employee
  • A dependent child’s ceasing to be a dependent under the plan (less common now that PPACA has established adult child eligibility through age 26)

Can You End Health Insurance Coverage Without a Qualifying Event?

How Can You Drop Your Spouse From Coverage?

The “in anticipation” rule presents special challenges to plan administrators. If a spouse is taken off the plan prior to a divorce, a carrier for the plan may resist reinstating the spouse’s coverage under COBRA when the divorce occurs several months later. COBRA guidance does not specify how to determine whether an employee dropped a spouse’s coverage in anticipation of a qualifying event. In most cases, the only indication that the “in anticipation” rule may apply is the fact that a divorce occurs after the employee drops the spouse’s coverage.

Determining your Compliance Strategy

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HUB International is a leading North American insurance brokerage that provides employee benefits, business, and personal insurance products and services.

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HUB International

HUB International is a leading North American insurance brokerage that provides employee benefits, business, and personal insurance products and services.