Losing a job or experiencing a change in employment status can be stressful, particularly when it impacts health insurance coverage. The Consolidated Omnibus Budget Reconciliation Act (“COBRA”) provides a critical safety net by allowing employees and their families to continue employer-sponsored health coverage under certain circumstances.
What Plans Are Covered by COBRA?
COBRA applies to group health plans sponsored by:
- Private-sector employers; and
- State and local government employers
To qualify, the employer must have at least 20 employees on more than 50% of its typical business days during the prior calendar year. If this threshold is met and the employer offers a group health plan, COBRA likely applies.
