When does COBRA apply? — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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When does COBRA apply?

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in Employment Law,Human Resources

Q. Our business has 14 employees, and we pay 100 percent of their health insurance costs. One employee is out on workers' comp. Are we required to continue paying his health insurance, or can we offer him COBRA? —P.F., Delaware

A. Assuming that your organization isn't operating under a collective-bargaining agreement, employment contract, company policy or used past practices to the contrary, you can discontinue that employee's health insurance without offering him an opportunity to elect continuing coverage. That's because it appears COBRA does not cover your small business. Only employers with 20 or more employees on more than 50 percent of its typical business days in the previous calendar year are subject to COBRA.

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