What is the minimum number of employees an employer must have for a terminated employee to qualify for COBRA?

Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), an employer must have a minimum of 20 employees on their payroll for the terminated employee to qualify for COBRA continuation coverage. This law allows eligible employees and their dependents to continue their health insurance coverage for a limited time after employment ends or after another qualifying event, such as a reduction in hours.

This requirement ensures that the entitlement to COBRA insurance is applicable to larger employers, promoting the stability of health insurance coverage for employees during transitions. Smaller employers, with fewer than 20 employees, are not subject to COBRA regulations, so terminated employees from those companies do not qualify for this continuation coverage under COBRA.

Understanding this threshold is critical in the context of employer mandates regarding health insurance and the rights of employees when their employment status changes.