Final answer:
COBRA provides continued health insurance coverage for various qualifying events. However, COBRA coverage does not extend to employees terminated for gross misconduct, making it the exception to the rule.
Step-by-step explanation:
The subject in question here is the Consolidated Omnibus Budget Reconciliation Act (COBRA), which provides eligible employees and their dependents the option to continue health insurance coverage under their company's group plan after an event that would normally result in the loss of eligibility. Such qualifying events include job termination, reduction in the hours worked, transition between jobs, death, divorce, and other life events.
Under COBRA, continued coverage would be provided to a former dependent of an employee who is no longer of dependent status, a terminated employee, and a divorced spouse of an employee. However, COBRA coverage does not apply to a covered employee who is terminated for gross misconduct. Thus, answer (d) 'a covered employee is terminated for gross misconduct' is the correct response as the exception to the continued coverage under COBRA.
The Affordable Care Act (ACA), which is related but distinct from COBRA, aimed to ensure coverage for the uninsured, and people with preexisting conditions, and set mandates for employers and individuals regarding health insurance coverage. With the complexities of healthcare legislation and ongoing political changes, employees need to be aware of their rights and options regarding health insurance coverage under different scenarios.