Does getting terminated from a company "with cause" prevent you from being able to sign up for Cobra coverage?

Question

In other words, can your employer who fired you decide not to allow you to sign up for COBRA coverage?

Or, if you resigned under your own will, is there any way they can decide later not to cover you on COBRA coverage?

Answer 1

You can be denied Cobra coverage if you were terminated for "gross misconduct".  This is not defined, but is clearly different than simply being terminated for cause.  See the second link below for a discussion of this.  An example of gross misconduct might be trying to shoot a coworker (or your boss) or embezzling large amounts of money over an extended period of time.  For cause would include more common reasons for termination, such as attendance problems.

Generally, continuing your coverage under Cobra is your right, as long as you gain coverage under one of the qualifying events, such as termination of employment.  Unless the company or their health coverage disappears completely, you cannot be excluded from the coverage arbitrarily.

Answer 2

No, COBRA is federally mandated.  You pay for it though, the company doesn't have to.