COBRA for the whole division's children?

[Guest Richard Bellamy]

A company has a Health Plan A that all of the employees of Division X (and their beneficiaries) are enrolled in. During a routine audit, it is discovered that the employees of Division X are not eligible to be in Health Plan A. Rather, they are eligible for Health Plan B, which does not offer dependent coverage. All of the employees of Division X are moved from Health Plan A to Health Plan B. All of the dependents lose their coverage.

Are the dependents of the employees of Division X entitled to COBRA? If so, is it from Health Plan A or Health Plan B?

[Chaz]

A company has a Health Plan A that all of the employees of Division X (and their beneficiaries) are enrolled in. During a routine audit, it is discovered that the employees of Division X are not eligible to be in Health Plan A. Rather, they are eligible for Health Plan B, which does not offer dependent coverage. All of the employees of Division X are moved from Health Plan A to Health Plan B. All of the dependents lose their coverage.

Are the dependents of the employees of Division X entitled to COBRA? If so, is it from Health Plan A or Health Plan B?

They are not entitled to COBRA because they have not incurred a qualifying event.