Which statement best describes how ERISA status affects COBRA applicability?

• A. ERISA status determines nothing
• B. COBRA applies regardless of ERISA
• C. ERISA status always triggers COBRA
• D. COBRA applicability depends on the plan being a group health plan and its ERISA status

Answer: (D)

The essential idea is that whether COBRA can be used depends on two things: the plan must be a group health plan, and that plan must be subject to ERISA. Federal COBRA continuation rights only apply to group health plans that fall under ERISA’s rules. That means private-sector employer plans that are ERISA-covered (often private employers with 20+ employees, whether the coverage is self-insured or insured) are the ones where COBRA can be elected after a qualifying event. If a plan isn’t a group health plan, or if it isn’t ERISA-covered (for example, a government plan or a church plan, or some non-ERISA arrangements), COBRA doesn’t apply. There are state continuation laws that may provide similar rights in some non-ERISA contexts, but they are separate from federal COBRA. So the correct description is that COBRA applicability depends on the plan being a group health plan and its ERISA status.