The gross misconduct exception under COBRA means that if an employee’s employment is terminated due to gross misconduct, continuation coverage does not have to be offered to the terminated employee or the terminated employee’s family. One of the many tricky aspects of administering the gross misconduct rule is that the decision should be made at the time of the termination. If the gross misconduct rule is used as a defense to a failure to notify of a qualifying event, a court might be more skeptical of the position.
