How many employees must an employer have to be subject to COBRA regulations?

Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), employers with 20 or more employees are subject to its regulations. COBRA was enacted to provide continued health insurance benefits to employees and their families in the event of certain qualifying events, such as job loss or reduction in hours. The law applies specifically to group health plans maintained by employers in the private sector with at least 20 employees, which ensures that a considerable number of employees are able to benefit from the continuation of their healthcare coverage. In contrast, smaller employers, those with fewer than 20 employees, are not bound by these regulations and can choose whether or not to provide continuation coverage, which is why having 20 employees is the threshold for COBRA applicability.