COBRA Explained

The section below outlines key definitions and elements of COBRA including:

• Which health plans are covered by COBRA
• What COBRA requires
• Events that trigger continuing coverage under a group health plan  
• Events that extend COBRA coverage
• Events that terminate COBRA coverage
• Notice requirements

Health Plans Covered by COBRA

COBRA generally applies to all private-sector group health plans maintained by employers that have at least 20 employees on more than 50 percent of the typical business days in the previous calendar year.

• Both full- and part-time employees are counted to determine whether a plan is subject to COBRA.
• Each part-time employee counts as a fraction of a full-time employee, with the fraction equal to the number of hours that the part-time employee worked divided by the hours an employee must work to be considered full time.
• COBRA also applies to plans sponsored by state and local governments.  The law does not apply, however, to plans sponsored by the Federal government or by churches and certain church-related organizations.

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