Who must offer COBRA coverage?

The requirement to offer COBRA coverage applies specifically to employers with 20 or more employees who provide group health benefits. The Consolidated Omnibus Budget Reconciliation Act (COBRA) was designed to provide continue health insurance coverage to employees and their families after certain qualifying events, such as job loss or reduction in hours. This means that only those employers who meet the threshold of having 20 or more full-time employees are obligated to offer COBRA coverage.

This regulation ensures that larger businesses, which typically have the resources and coverage options to implement such an arrangement, are held accountable for maintaining health benefits for their employees even in times of transition. Smaller employers, with fewer than 20 employees, do not fall under the same requirements and therefore are not mandated to provide COBRA coverage.

In addition, while federal government employers do provide health benefits, they are generally subject to different regulations, such as the Federal Employees Health Benefits Program (FEHBP), and have other specific programs to assist their employees. Hence, their obligations do not fall under the COBRA framework.

Thus, the specific stipulation about the size of the employer's workforce being 20 or more is what defines the requirement for offering COBRA coverage, making this option the correct choice.