An individual covered under a group health plan on the day before a qualifying event who becomes eligible to elect health care continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA).

Qualified beneficiaries generally are:

Children who are born to or placed for adoption with an employee during the period the employee is receiving COBRA continuation coverage also may be COBRA qualified beneficiaries. (This is the rule even though these individuals were not covered by the group health plan on the day before the qualifying event.)

Under federal economic stimulus legislation enacted in March 2021 in response to the US outbreak of COVID-19, certain COBRA qualified beneficiaries are eligible for temporary COBRA premium assistance and a health plan enrollment option (American Rescue Plan Act of 2021 (ARPA-21), Pub. L. No. 117-2, H.R. 1319, § 9501 (Mar. 11, 2021)).

For more information, see COBRA Toolkit and Practice Note, COBRA Overview.