Is COBRA available to private employers with fewer than 20 employees?

• A. Yes, for all private employers.
• B. No, COBRA generally applies to private employers with 20 or more employees and to state/local governments.
• C. Only if the employees agree.
• D. Only if the employer has a collective bargaining agreement.

Answer: (B)

COBRA continuation coverage is required for group health plans sponsored by private-sector employers that have 20 or more employees (and it also covers state and local governments). For private employers with fewer than 20 employees, federal COBRA does not require continuation coverage. Some states have their own “mini-COBRA” laws that may require continuation for small employers, so in those states there can be an alternative option. The other choices aren’t correct because coverage under COBRA isn’t universal for all private employers, it isn’t based on employee consent, and it doesn’t depend on a collective bargaining agreement.