State RegulationsMI specificDifficulty 1/5
Federal COBRA continuation coverage, as described in Michigan Department of Insurance and Financial Services consumer guidance, generally applies to group health plans maintained by employers employing how many or more employees?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
The Michigan Department of Insurance and Financial Services (DIFS) explains on its Switching Health Plans consumer page that federal COBRA continuation applies to group health plans of employers with 20 or more employees. Michigan's own small-employer provisions, such as M.C.L. 500.3708, supply special enrollment rights rather than a state continuation duration, so the 20-employee threshold is the key dividing line between COBRA and non-COBRA groups.
Why the other options are wrong
- A) A 10-employee threshold has no basis in federal COBRA or in Michigan's small-employer law.
- C) 50 or more describes a large-employer threshold used in other federal coverage contexts, not the COBRA trigger described by DIFS.
- D) 100 or more is far above the COBRA threshold and would wrongly exclude most continuation-covered groups.
Memory hook
COBRA kicks in at 20 — count heads before promising continuation.