Most Nonprofits Aren’t Exempt From COBRA

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in Human Resources

Q. We're a nonprofit, and we offer health insurance to our employees. If an employee is enrolled in the health plan and voluntarily quits, are we required to offer COBRA? Or does our nonprofit status let us off the hook? —A.B., Tennessee

A. Being a nonprofit organization doesn't automatically exempt you from COBRA. The continuing health insurance law generally covers group health plans maintained by employers with 20 or more employees in the prior year. It applies to plans in the private sector and those sponsored by state and local governments. About the only plans it doesn't apply to are those sponsored by the federal government and certain religious organizations.

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