Extending group health plan coverage to employees who lose coverage
The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a federal law that establishes a legal obligation for most employers to extend group health plan privileges for limited periods of time under certain circumstances to employees who would otherwise lose coverage.
Coverage
Employers
All employers maintaining a group health plan are affected by COBRA unless one of the following criteria are matched:
The employer employed fewer than 20 employees (20 full time equivalents) on at least 50% of its typical business days during the previous calendar year. Small employers have the option of counting employees by pay period rather than every business day. Part-time employees are counted as partial employees. For example, if a full-time employee works eight hours a day and a part-time employee works four hours a day, the part-time employee would count as one-half of an employee for purposes of the 20 employee threshold. Also, for purposes of the 20 employee threshold, employees of all companies that are in a controlled group...
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