Benefits Administration Manual

Consolidated Omnibus Budget Reconciliation Act (COBRA)

407. Loss of Group Coverage in Anticipation of a Qualifying Event

State employees are permitted to delete their spouse, domestic partner, or dependent children from group coverage based on a voluntary action (e.g., move out of household, deletion during open enrollment, deletion outside open enrollment). These types of deletions are not COBRA qualifying events and COBRA should not be offered. However, if group coverage is lost or reduced in anticipation of a COBRA qualifying event (e.g., divorce, legal separation, termination of a domestic partnership), then COBRA coverage must be offered from the first day of the month following the COBRA qualifying event.

Example: After filing for divorce, legal separation, or termination of a domestic partnership the employee deletes his/her spouse, domestic partner, or dependent children from coverage because of a move out of household or voluntary deletion. In this situation, the deletion was done in "anticipation of a COBRA qualifying event" and therefore should not be allowed. COBRA coverage must be offered at the time of the qualifying event (divorce, legal separation, or termination of domestic partnership is finalized). Employees should inform personnel offices of these events, and are informed of this reporting requirement through the initial general notice.

In the event of deletion of the spouse, domestic partner, or dependent children in anticipation of a COBRA qualifying event, and after notification from a spouse, domestic partner, or dependent children that he/she was deleted from coverage in anticipation of a COBRA qualifying event, the employee should be informed by the personnel office that they have received knowledge of this action, and make arrangements to place the dependent(s) back on the employee's plan. The deleted spouse, domestic partner, or dependent children must be offered COBRA coverage at the time of the COBRA qualifying event.

Note: Keep in mind that if an employee deleting spouse, domestic partner, or dependent children is doing so not in anticipation of a COBRA qualifying event, the employee would be allowed to re-enroll his/her dependent children in State-sponsored coverage during the next open enrollment period as with any other similarly situated employee.

Updated February 14, 2011 at 1:56 PM.