JULY 2001 QUESTION
Q. If
an employee is currently participating in COBRA insurance
continuation and they become eligible for other health insurance
coverage, can we discontinue their COBRA coverage?
A. The
provisions for this differ under federal and state law. Under
federal COBRA, after the COBRA participant actually enrolls
in (not merely becomes eligible for) the new coverage, you
may discontinue the COBRA coverage. For small groups who
do not fall under federal COBRA but do fall under state
continuation rules, merely becoming eligible for new insurance
coverage allows you to discontinue the old insurance.
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