How many employees must an employer have for the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) to apply?

• A. At least 15
• B. At least 20
• C. At least 10
• D. At least 100

Answer: (B)

COBRA continuation coverage applies to group health plans sponsored by employers of a certain size, specifically those with 20 or more employees (counting full-time equivalents) on more than half the typical business days in the previous year. That 20-employee threshold is what makes COBRA applicable, so the required number is at least 20. If an employer has fewer than 20 employees, federal COBRA generally doesn’t apply, though some states have mini-COBRA rules that may require limited continuation coverage.