How many employees must an employer have for a terminated employee to be eligible for COBRA?

The eligibility for COBRA (Consolidated Omnibus Budget Reconciliation Act) applies to employers that have 20 or more employees. This federal law allows employees and their dependents to continue health insurance coverage after a qualifying event, such as termination of employment or a reduction in hours worked. The requirement of 20 employees is key because it establishes the threshold for which employers are obligated to offer these continuation coverage options.

Employers with fewer than 20 employees are not subject to COBRA regulations and may not be required to provide this continuation of health benefits. This is intended to protect employees of larger businesses, ensuring they have access to health insurance even in times of transition. Understanding this threshold helps in determining whether COBRA benefits are available in various employment situations.