Which company is subject to the COBRA continuation of coverage requirements?

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Multiple Choice

Which company is subject to the COBRA continuation of coverage requirements?

The Consolidated Omnibus Budget Reconciliation Act (COBRA) requires certain employers to offer continuation of health insurance coverage to their employees and their dependents when group health coverage would otherwise be terminated due to specific events such as job loss, reduction in hours, or other qualifying events. For COBRA to be applicable, a company must have at least 20 full-time equivalent employees on a typical business day during the prior calendar year. This provision is crucial in determining which companies fall under the COBRA requirements. In this scenario, Company B is the only organization among the options that meets the criteria, with 13 full-time employees and 16 part-time employees, bringing their total to well over the 20-employee threshold when combining full-time and part-time employees based on COBRA's calculation for eligibility. The other companies listed either fall below the 20-employee requirement (Company A with 15 full-time employees, Company D with 10 full-time employees, and Company C with 5 full-time and 10 part-time employees) or do not have the necessary workforce to trigger COBRA obligations. Therefore, D is correct because Company B satisfies the employee count requirement to be subject to COBRA continuation of coverage.

The Consolidated Omnibus Budget Reconciliation Act (COBRA) requires certain employers to offer continuation of health insurance coverage to their employees and their dependents when group health coverage would otherwise be terminated due to specific events such as job loss, reduction in hours, or other qualifying events.

For COBRA to be applicable, a company must have at least 20 full-time equivalent employees on a typical business day during the prior calendar year. This provision is crucial in determining which companies fall under the COBRA requirements.

In this scenario, Company B is the only organization among the options that meets the criteria, with 13 full-time employees and 16 part-time employees, bringing their total to well over the 20-employee threshold when combining full-time and part-time employees based on COBRA's calculation for eligibility.

The other companies listed either fall below the 20-employee requirement (Company A with 15 full-time employees, Company D with 10 full-time employees, and Company C with 5 full-time and 10 part-time employees) or do not have the necessary workforce to trigger COBRA obligations. Therefore, D is correct because Company B satisfies the employee count requirement to be subject to COBRA continuation of coverage.

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