Employers that employ fewer than how many employees are exempt from COBRA requirements?

Employers that employ fewer than how many employees are exempt from COBRA requirements?

• A. 10
• B. 20
• C. 50
• D. 100

Answer: (C)

The correct answer is based on the provisions of the Consolidated Omnibus Budget Reconciliation Act (COBRA), which mandates that employers with a certain number of employees must offer continued health insurance coverage to employees and their families after a qualifying event, such as termination of employment or reduction in hours. Specifically, COBRA applies to employers with 20 or more employees, meaning those with fewer than 20 employees are exempt from these requirements. This allows smaller employers the flexibility to manage their health benefit obligations without the additional regulatory burden placed on larger employers that are subject to COBRA's stipulations. Understanding the specifics of COBRA is important for recognizing employee rights regarding health coverage continuity and the responsibilities of employers. Employers with 20 or more employees have to adhere to set regulations under COBRA to ensure that their employees can maintain health insurance for a limited time following qualifying events. For employers below that threshold, federal law does not impose these same obligations, reflecting the law’s tailored approach to different sizes of businesses and their operational capabilities.

The correct answer is based on the provisions of the Consolidated Omnibus Budget Reconciliation Act (COBRA), which mandates that employers with a certain number of employees must offer continued health insurance coverage to employees and their families after a qualifying event, such as termination of employment or reduction in hours. Specifically, COBRA applies to employers with 20 or more employees, meaning those with fewer than 20 employees are exempt from these requirements. This allows smaller employers the flexibility to manage their health benefit obligations without the additional regulatory burden placed on larger employers that are subject to COBRA's stipulations.

Understanding the specifics of COBRA is important for recognizing employee rights regarding health coverage continuity and the responsibilities of employers. Employers with 20 or more employees have to adhere to set regulations under COBRA to ensure that their employees can maintain health insurance for a limited time following qualifying events. For employers below that threshold, federal law does not impose these same obligations, reflecting the law’s tailored approach to different sizes of businesses and their operational capabilities.