Which Employers Are Subject To COBRA?
11/10/2025
Under the Consolidated Omnibus Budget Reconciliation Act (
COBRA), employers have specific legal requirements to provide continuing health insurance coverage to eligible employees and their families after certain qualifying events.
Employers That Must Comply With COBRA Requirements:
- Private-sector employers with 20 or more employees on more than 50% of typical business days in the previous calendar year (Includes part-time employees counted as a fraction of a full-time employee)
- State and local government health plans, but not federal employees, as they are covered by other laws
Employee count includes:
- Full-time employees
- Part-time employees (counted as a fraction of a full-time equivalent)>/li>
The following organizations are not subject to COBRA:
- "Small employers" (Employers with fewer than 20 employees on more than 50% of their typical business days in the previous calendar year)
- Federal government plans (Federal employees are covered by the Federal Employees Health Benefits (FEHB) program, which has its own continuation-of-coverage rules that are similar to, but not governed by, COBRA)
- Churches and certain church-related organizations (COBRA does not apply to plans sponsored by churches or certain church-affiliated organizations that are exempt under ERISA.)