COBRA applies to employers with how many employees at a minimum?

COBRA, or the Consolidated Omnibus Budget Reconciliation Act, mandates that employers with a minimum of 20 employees must offer continued health insurance coverage to certain employees and their dependents who lose their health benefits due to specific qualifying events. This requirement ensures that employees are protected from sudden loss of health insurance coverage when they experience situations such as job loss, reduction in work hours, or other circumstances that affect their eligibility for health benefits. The minimum threshold of 20 employees is designed to apply to larger employers, ensuring a greater capacity to provide such benefits.

Smaller employers, with fewer than 20 employees, are not required under COBRA to extend these benefits, which is why the other options do not apply. Thus, the requirement for COBRA to be applicable is firmly established at the 20-employee mark, making it essential for both employers and employees to understand their rights and obligations under this federal law.