Must small employers offer the COBRA premium subsidy?

While the federal COBRA law does not apply to employers with fewer than 20 employees, many states require small employers to offer some form of health care continuation coverage. The premium subsidy provision, including its notice requirements, applies to state programs that provide comparable continuation coverage. In order to be comparable, the state law right must be to continue substantially similar coverage as was provided under the group health plan at a monthly cost that is based on a specified percentage of the group health plan's cost. Note that the special election period does not apply to small employers that are subject to state continuation requirements.