What is Cal-COBRA?
Cal-COBRA is a California health coverage protection. It is not health coverage. Cal-COBRA requires employers with 2 to 19 employees to provide their employees (and their dependants) the right to continue health insurance coverage after a qualifying event occurs. For health coverage protection for larger group sizes of 20 or more see COBRA.
Cal-COBRA is California law that has similar provisions to federal COBRA. With Cal-COBRA the group policy must be in force with 2-19 employees covered on at least 50 percent of its working days during: • the preceding calendar year, or, • the preceding calendar quarter, if the employer was not in business during any part of the preceding calendar year. Eligibility for Cal-COBRA extends to indemnity policies, PPOs, and HMOs only. Self-insured plans are not eligible. Unlike COBRA, church plans are eligible under Cal-COBRA. Cal-COBRA does not apply to individual health insurance. As of January 1, 2003, the extension period for Cal-COBRA has been changed from 18 months to 36 months. If you become eligible for Cal-COBRA after January 1, 2003, you will have the benefit of Cal-COBRA coverage for a full 36 months instead of the prior 18-month coverage extension.
A California state continuation of coverage program for employees of businesses with between 2 and 19 employees who are not regulated by federal COBRA law. Cal-COBRA was established by the California Continuation of Benefits Replacement Act of 1997, which requires health plans to offer continuation coverage to members in employer groups with 2-19 employees, upon certain “qualifying events”, without evidence of insurability and under the same terms and conditions that apply to similarly situated individuals under the group benefit plan.
