Which employers are subject to COBRA continuation coverage?

• A. Private-sector employers with 20+ employees that sponsor group health plans
• B. Government agencies with any number of employees
• C. Employers with self-insured plans only
• D. Nonprofit organizations with fewer than 20 employees

Answer: (A)

COBRA continuation coverage applies to group health plans sponsored by private-sector employers that have at least 20 employees. This size threshold exists because COBRA is designed for larger employers that offer group health plans, ensuring employees and their families can keep coverage after certain events. The plan can be either insured or self-insured; COBRA covers group health plans regardless of how they are funded, so the burden isn’t limited to self-insured arrangements. Government agencies aren’t the typical subject of COBRA in this context, and small private employers or nonprofit organizations with fewer than 20 employees aren’t covered either. So the description that matches COBRA is private-sector employers with 20 or more employees that sponsor group health plans.