COBRA Eligibility

[oriecat]

It has always been my understanding that becoming covered by another group plan can end COBRA early, but being eligible for another group plan does not mean you cannot sign up for COBRA. An employee's son was recently reduced in hours and received his COBRA notice. It says on there that to be eligible to elect COBRA, you cannot be eligible for another plan, including a parent's plan. Did I understand this wrong, are they wrong, or did something change with PPACA and the age extension for dependents? Note, I haven't actually seen the form, but this is how it was explained to me.

Thank you.

[Chaz]

I'm betting the form referred to the COBRA subsidy, not to COBRA in general.

[oriecat]

I kinda had that thought too, but this just happened and the subsidy eligibility ended in May, so that didn't make much sense to me. But I suppose they could be months behind in updating their COBRA forms.

[oriecat]

Turns out this was a small employer, so it wasn't COBRA but state continuation.

[Guest Sieve]

Eligibility of children up to age 26 in a parent's plan apparently is eliminated upon the child's eligibility for another plan if the parent's plan is grandfathered. (I say apparently, because that's what I've read, and I've not confirmed it by reference to the statutory provisions.)