Continued coverage under COBRA would be provided to all of the following EXCEPT

• A. A covered employee terminated for voluntary resignation
• B. A covered employee whose hours were reduced
• C. A covered employee terminated for gross misconduct
• D. A dependent child who aged out

Answer: (C)

COBRA continuation is available when a covered employee or a dependent would lose their employer-sponsored coverage due to a qualifying event. A qualifying event generally includes things like a job ending (involuntary, not including gross misconduct), a reduction in hours, the employee’s death, a divorce or legal separation, or a dependent child losing eligibility.

The key exception is termination of employment for the employee’s gross misconduct. In that specific case, COBRA isn’t required to be offered, so continued coverage isn’t provided.

Putting it together: a voluntary resignation ends the employee’s coverage but is a qualifying event that allows COBRA continuation; a reduction in hours is also a qualifying event; a dependent child aging out loses dependent status and is eligible for COBRA continuation. However, termination for gross misconduct is not a COBRA-eligible event.

Thus, the scenario involving gross misconduct is the one where COBRA continuation would not be provided.