Can you change health plans when electing COBRA?

Answer 1

In a health plan with multiple options, the health coverage that is considered to be in effect on

the day before the qualifying event is the option the employee previously selected. If the

employer offers participants a choice among indemnity coverage, PPO coverage, or HMO

coverage, and the qualified beneficiary elected HMO coverage for the plan year in progress at

the time of the qualifying event, the qualified beneficiary generally may not change to the

indemnity or PPO coverage at the time of the COBRA election. Even if the PPO and indemnity

coverages are separate plans, the qualified beneficiary did not have coverage under them at

the time of the qualifying event and cannot continue that coverage. At an annual enrollment

period occurring during the continuation period, however, the qualified beneficiary will be

entitled to switch options in the same manner as an active employee and could then elect the

PPO or indemnity coverage in place of the HMO coverage.

(Qualified beneficiaries' election

and enrollment rights are different in some circumstances, so ask about that if you are considering the rights of dependents rather than the ex-employee alone.)