What happens to the coverage under COBRA if an employee's hours are reduced?

When an employee experiences a reduction in hours, COBRA (Consolidated Omnibus Budget Reconciliation Act) allows them to maintain their health insurance coverage for a limited time. Under COBRA, eligible employees and their families can continue their group health insurance coverage under certain qualifying events, including termination of employment (except for gross misconduct) or a reduction in the hours of employment.

The entitlement to maintain coverage under COBRA is designed to prevent gaps in health insurance for employees and their dependents during times when they are dealing with job status changes, such as a decrease in work hours that does not result in job loss. This limited continuation of coverage can typically last up to 18 months.

While there are other scenarios related to health insurance coverage that might arise in different contexts, in the case of a reduction in hours, maintaining coverage under COBRA is the primary aspect and the correct answer in this scenario.