How many employees must an employer have for a terminated employee to be eligible for COBRA?

• A. 15
• B. 20
• C. 50
• D. 100

Answer: (B)

COBRA eligibility hinges on the size of the employer’s group health plan. Federal COBRA applies to group health plans sponsored by employers with 20 or more employees. If an employer has at least 20 employees, a terminated employee who was covered under that plan can elect COBRA to continue coverage after the qualifying event. The employee count usually includes both full-time and part-time workers and is based on the employer’s headcount in the preceding year. If the employer has fewer than 20 employees, federal COBRA generally doesn’t apply (though some states offer mini-COBRA). So, the threshold under federal COBRA is 20 employees.