COBRA

Can a COBRA participant discontinue coverage for a dependent beneficiary mid-year without a qualifying event and continue their coverage and other dependent beneficiaries. If no, is this specified in the COBRA regulations?

Assuming the dependent is a qualified beneficiary, I'd say yes based on the COBRA independent election rights rules.  The employee will be dropping while the other qualified beneficiary maintains the COBRA election independently.  If the dependent is not a QB, they would lose COBRA rights upon the employee dropping.

Treas. Reg. §54.4980B-6:

Q-. 6. .  Can each qualified beneficiary make an independent election under COBRA?

A- 6 . Yes. Each qualified beneficiary (including a child who is born to or placed for adoption with a covered employee during a period of COBRA continuation coverage) must be offered the opportunity to make an independent election to receive COBRA continuation coverage. If the plan allows similarly situated active employees with respect to whom a qualifying event has not occurred to choose among several options during an open enrollment period (for example, to switch to another group health plan or to another benefit package under the same group health plan), then each qualified beneficiary must also be offered an independent election to choose during an open enrollment period among the options made available to similarly situated active employees with respect to whom a qualifying event has not occurred. If a qualified beneficiary who is either a covered employee or the spouse of a covered employee elects COBRA continuation coverage and the election does not specify whether the election is for self-only coverage, the election is deemed to include an election of COBRA continuation coverage on behalf of all other qualified beneficiaries with respect to that qualifying event. An election on behalf of a minor child can be made by the child's parent or legal guardian. An election on behalf of a qualified beneficiary who is incapacitated or dies can be made by the legal representative of the qualified beneficiary or the qualified beneficiary's estate, as determined under applicable state law, or by the spouse of the qualified beneficiary. (See also Q&A-5 of §54.4980B-7 relating to the independent right of each qualified beneficiary with respect to the same qualifying event to receive COBRA continuation coverage during the disability extension.) The rules of this Q&A-6 are illustrated by the following examples; in each example each group health plan is subject to COBRA:...

2024 Newfront COBRA for Employers Guide

Thanks, Brian, but just to be clear, I understand that dependents have independent election rights, but I'm asking if they can drop COBRA coverage once elected, mid-year, for any reason.

Yes, you can drop COBRA at any point by simply not making the required premium payment.

What if, for example, there are three family members with family COBRA coverage and are paying one premium for all family members?  If they want to drop the child's coverage mid year can the COBRA premium be unilaterally reduced to the level for Employee + Spouse?

Thanks, Chaz, for clarifying my question better than I did!

Assuming they're QBs, I think that can be unilaterally done at any point because it would be one QB independently ending their coverage, while the other QBs maintain their independent election rights.  That was my point above.

As to how it practically occurs, that will probably vary from plan to plan (or more realistically, TPA to TPA).  The formal QB notice requirements in the COBRA regs surround the requirements upon divorce/legal separation, loss of dependent status, second qualifying events, disability determinations, etc.  Notice of voluntarily dropping mid-maximum coverage period doesn't seem to be addressed. 

Any reasonable requirement that the QB notify the plan of the change in coverage I would think suffice.  Clearly there will have to be some form of notice for the plan to know that a) it's not just a premium shortfall situation, and b) which QBs are maintaining coverage.

Thank you, Brian.