News Notes: COBRA Can’t Be Denied Because Employee Has Other Coverage

The U.S. Supreme Court has ruled that you can’t deny COBRA continuation coverage to an eligible employee or dependent simply because the person-at the time COBRA coverage is elected-is also covered under another group health plan, such as one provided by a spouse’s employer.3 Note that despite this new ruling you can terminate COBRA benefits if, following the date COBRA benefits were elected, the person becomes covered under another group health plan. This is true as long as the new plan has no limits on preexisting conditions coverage. Be sure to review and revise your COBRA policy so that it’s consistent with the new ruling.