Terming COBRA: OFFERED new coverage vs. ELECTED new coverage

[Guest Damien]

A former employee who elected COBRA has become ELIGIBLE for group health coverage at a new job. She has inquired if she can keep her COBRA in place if she declines the new coverage. The benefits under COBRA obviously beat the new coverage she is eligible for. Does the former employer have the right to term her COBRA since she is ELIGIBLE for new group health coverage, or does she actually have to ELECT new coverage to lose her right to COBRA? Assume for the sake of argument that the new plan has no pre-x. Any opinions????????????

[Sandra Pearce]

Eligibility alone does not terminate previously elected COBRA coverage. If the new employer's coverage is elected and the new coverage was not in effect prior to the COBRA election, then that would be a reason for COBRA continuation to end. For most people staying on COBRA continuation coverage with a prior employer is a costly proposition.