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Guide to Employment Law. Currently, there is no federal law mandating employers to provide employees with health insurance coverage, and many states do not require employers to provide it or any other health coverage.
Under the law, an employer with 20 or more employees must offer the option of continued participation in the employer's health insurance plan. It is the responsibility of the former employee to pay the full cost of coverage. In general, the employee will pay up to 102 percent of the plan's cost.