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If employee voluntarily quits, must nonprofit employers offer COBRA coverage?

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in Employee Benefits Program

Q. We’re a nonprofit organization and offer health insurance to our 100+ employees. If an employee is enrolled in the health plan and voluntarily resigns, are we required to offer COBRA? Or does our nonprofit status let us off the hook?

A. The only exceptions from Consolidated Omnibus Budget Reconciliation Act (COBRA) continuation coverage are for group health plans sponsored by small employers (fewer than 20 employees), or for government- and church-sponsored plans. Generally, a church plan is one established and maintained for the benefit of employees of a church (or association of churches) exempt for tax under Internal Revenue Code Section 501.

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