COBRA for Medical Plan that Limits Reimbursements to On-the-job Injuries

[Locust]

This is an unusual situation and I would appreciate feedback.

A company has a medical reimbursement plan that limits reimbursements to medical expenses for treatment of on-the-job injuries that are not reimbursable by workers compensation. Without going into specifics, this is an unusual company and the injuries are regularly incurred and are not the result of accidents - for example, ankle injuries for a basketball player. If this were a medical plan for a basketball team, the players would be reimbursed for ankle braces, the orthopaedist, and massage therapy.

The question is what to do when the employee quits. I don't think this should be subject to COBRA because it is limited to on-the-job injuries, and non-employees wouldn't have on-the-job injuries.

Any guidance out there on this issue?

Locust