Question of the Week

Posted by BAS - 31 March, 2022

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Q.- We employ only 7 employees, but we do offer them health coverage. We have an insured plan. Do we have to let them continue our health coverage when they terminate employment?

A.- If you only have 7 employees and you had fewer than 20 employees last year, your plan is not subject to the federal COBRA continuation rules. That means you don’t have to offer a terminating employee the right to continue health coverage under federal law. However, you should definitely check state law. Many states have their own mini-COBRA laws which require small employers to offer a continuation of health coverage right to terminating employees.

Topics: COBRA, COBRA Administration, HR & Benefits, HR & Benefits News


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