A qualified beneficiary is any individual provided coverage on the day before a qualifying event under a group health plan as a result of performing services for the covered employer.1

Qualified COBRA Beneficiaries

Only qualified beneficiaries are entitled to continued coverage under COBRA. This includes:

Employees who are terminated either voluntarily or involuntarily, except those terminated for gross misconduct.
Employees whose hours of work are reduced to a level that precludes them from coverage under the plan.
Covered spouses and dependent children of the covered employees.
Children born to or placed for adoption with a covered employee during the COBRA continuation period.

To be considered a qualified beneficiary, an individual must have been covered by the plan on the day before the qualifying event occurred, with the exception of a child born to or placed for adoption with an employee during the COBRA continuation period.

It is important to note that a qualified beneficiary can add new dependents to the plan while on COBRA if those individuals become dependents after the qualifying event. If a former employee on COBRA remarries and has a new child, the employee can add both the new spouse and child to the plan.

For information on same sex-spouses, see Same-Sex Spouse and Domestic Partner Benefits.

1. Treas. Reg. sec. 54.4980B-3, Q&A-1

COBRA - Covered Employees

Qualified COBRA Beneficiaries

COBRA and Cal-COBRA