Secondary Qualifying event on Cobra

6274086

I have a former employee that left employment and opted for Employee/Spouse Cobra coverage for medical and dental.  Then 6 months later he became eligible for medicare and dropped his coverage. We switched the spouse to individual coverage for the remainder of the 18 month term.  Now that the term is nearing end they are questioning why it is not 36 months.  Since I do not have an issue leaving her on Cobra, I called the insurance carrier and questioned this event as a secondary qualifier and was told no, it is 18 months.  I am trying to locate a more concrete answer, can anyone guide me towards any documents that will give me a more definitive answer then a carrier rep.?

ERISAmaven

I think that the insurance company is right because becoming entitled to Medicare is a qualifying event when it occurs before a termination of employment or reduction in hours. It can never a second qualifying event because any qualifying beneficiary would already be entitled to up to 36 months of COBRA. In this case, the qualifying event is the termination of employment and becoming entitled to Medicare is grounds for terminating the former employee's COBRA coverage. The spouse remains eeligible for COBRA for the balance of the 18 months.This is all covered in IRS Reg. Sec. 54.4980B-7.