Cal-COBRA

What is it?
Cal-COBRA is a state program that offers employees and their dependents an opportunity to continue their group health coverage when it might otherwise be lost.  The cost of this coverage is paid by the employee and can be up to 110% of the premium.

Who does it cover?
All employers with 2 -19 employees offering group health coverage must comply. Cal-COBRA covers employees and dependents who would lose their coverage because:

• The employee’s job ends or hours are reduced
• They become divorced or legally separated from the employee
• They are no longer considered a dependent (e.g. child reaches the maximum age)
• The employee enrolls in Medicare
• Death of the employee
• Coverage ends under Federal COBRA (if less than 36 months

How is it administered?
Administration duties are split between the employer and the insurance carrier.

Employer Responsibilities:
Provide all eligible new employees with information about Cal-COBRA
Notify the carrier when a qualifying event has taken place

Carrier Responsibilities:
Provide employee and/or dependents with election materials
Collection of premiums and termination coverage

How long does it last?
Cal-COBRA coverage lasts up to 36 months but can end sooner if:

• Premiums are not paid in a timely manner
• Participant becomes covered under another group health plan
• Participant enrolls in Medi-Cal or Medicare
• Participant was previously covered under Federal COBRA (time covered under Federal COBRA counts toward the 36 month maximum)

Additional information regarding Cal-COBRA can be found here.