Which event typically qualifies a former employee for COBRA continuation coverage?

• A. Voluntary resignation
• B. Involuntary termination
• C. Promotion within the same company
• D. Starting a job with a different employer

Answer: (B)

COBRA continuation coverage kicks in when a qualifying event causes a loss of the employer’s group health plan. For the employee, the classic qualifying event is the involuntary termination of employment (being laid off or fired, not for gross misconduct). When this happens, the former employee loses coverage and therefore gains the right to elect COBRA to keep that same plan for a limited time. This is the most common scenario people think of as triggering COBRA, which is why it’s the best answer.

A voluntary resignation also qualifies in the COBRA rules, but the situation described—focusing on a former employee and the typical trigger—points to involuntary termination as the standard example. A promotion within the same company does not end the current plan, so it wouldn’t trigger COBRA. Starting a job with a different employer could lead to new coverage rather than continuation of the old plan, so it’s not the typical trigger for COBRA from the former employer’s plan.