Is An Employee Ineligible For COBRA If They Go To Work For A Competitor?

If an employee voluntarily resigns and goes to work for or participates as an agent or owner of a competing interest, then directly solicits the accounts of the former employer, is that former employee still eligible for COBRA?

The federal COBRA law guarantees the employee has the right to continue their employer-sponsored health insurance regardless of how their employment ended. As an employer, your business must provide this continuation of health benefits if your company has 20 or more employees and if the employee had health insurance at the time their employment ended.

What About Gross Misconduct?

Instances of gross misconduct in the workplace may make an employee ineligible to for COBRA continuation. Gross misconduct is characterized as an objectionable action that is willful and cannot be described as a mistake or an act of negligence. In this case, if the employee had a non-compete agreement and it was broken, that may make them ineligible to receive COBRA benefits.

Affordable Temporary Health Insurance

If you are fairly healthy and still want to remain insured, alternatives to COBRA insurance may be available based on where you live. Short-term health insurance is a popular option and available in most States. This can protect you from high medical costs of new injuries or new illnesses that unexpectedly occur while allowing you to use any licensed doctor. Coverage is available up to $1 million per person. For more information and pricing, you can call us at 1-877-262-7241 or complete a free quote online.

Related Knowledge Base Posts

Are You Eligible For COBRA?

Take Our Survey