The Consolidated Omnibus Budget Reconciliation Act (COBRA) requires employers of 20 or more employees who maintain a group insurance plan to offer employees and their dependents who are no longer eligible for coverage under the terms of the employer’s group healthcare plan the opportunity, in some circumstances, to purchase continued coverage under the plan at a cost of up to 102% of the applicable group rate for certain defined periods. As discussed in detail in this chapter, this opportunity to continue health insurance coverage should be provided if there is a “qualifying event.” Many states, including Arizona, have a “mini-COBRA” law that requires employers with 19 or fewer employees to offer continued coverage at the employee’s expense under the employer’s health plan under certain qualifying conditions.
All employers maintaining a group health plan are subject to COBRA requirements unless the employer employs fewer than 20 employees or the plan is a church plan. All employees, both full and part time, of companies under common control are counted in determining whether the employer meets the 20-employee threshold. Self-employed individuals may be considered (such as partners in a professional service enterprise)...
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