Spousal Benefits & COBRA

LFernandes

This may be a stupid question but I can't find the answer anywhere in the regs.

I have an employee that was covering his spouse on his benefits until she was eligible for benefits at her new employer. I asked and received a letter from her new employer stating that she now has benefits. Upon receipt of this letter, I terminated her from our medical/dental plans.

Do I need to send her a COBRA notice since she is no longer a covered dependent under her husband's policy?

Your thoughts an opinions please!

Thanks!

bsa

An active employee is allowed to make plan decisions for all his covered beneficiaries. None of the covered beneficiaries become qualified beneficiaries until a qualifying event occurs that causes loss of coverage. A qualifying event is termination of the employee, reduction of hours for the employee or the death of the employee.

I think you are okay to NOT offer COBRA to the spouse.

moneyman

I agree that no qualifying event has taken place. The employee has choosen to change coverage by dropping the spouse's coverage and this does not fall under any catergory of an QE.