No Definition of Gross Misconduct
Gross misconduct is not considered a qualifying event and thus if you are dismissed and lose your health benefits because of gross misconduct, you are not eligible for health coverage under COBRA (your employer is not required by law to extend health benefits to you). However, the COBRA legislation doesn’t specify what is considered gross misconduct and neither have court decisions. That being said, it will take a lot for an employer to dismiss someone for gross misconduct because they know that the former employee will likely challenge the dismissal in court, a process no company really enjoys going through.