Question of the Week

Posted by BAS - 07 January, 2021

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Q.- We started our company in 2020 and just hired our 20th employee who will begin at the end of January. Since we have 20 employees, do we now have to offer COBRA?

A.- It seems like you will not have to offer COBRA in 2021. COBRA generally applies to private-sector group health plans maintained by employers that had at least 20 employees on more than 50 percent of its typical business days in the previous calendar year. You did not have more than 20 employees at any time in 2020, so COBRA will not apply to the 2021 calendar year.

Topics: COBRA, Eligibility & Enrollment, HR & Benefit Plans, HR & Benefits News


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