Prohibited Acts and Penalties

You cannot reduce or eliminate health coverage in anticipation of a qualifying event. If you do so, the qualified beneficiary may be entitled to the benefit that would otherwise be lost. An across-the-board reduction or elimination of benefits may be seen as being done in anticipation of a qualifying event. In that situation, the law may require you to make coverage available when there is a qualifying event. Carefully document your reasons for reducing or eliminating health coverage benefits.1

You cannot withhold anything to which a qualified beneficiary is otherwise entitled (for example, wages or vacation pay) to compel payment for COBRA coverage or to coerce the qualified beneficiary to give up rights to COBRA coverage.2

 
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