How Do The New Regulations Affect Cal-COBRA?
In the state of California, Cal-COBRA continuation coverage is offered to employers with 2 to 19 eligible employees. Until 2002, both Federal COBRA and Cal-COBRA benefits terminated after 18, 29 or 36 months, depending on the beneficiarys status. Then California law AB 1401 was enacted, requiring health plans and insurers to offer COBRA coverage for up to 36 months to all COBRA beneficiaries insured under a California group contract. After an individual exhausts their coverage under either Federal COBRA or Cal-COBRA, they are eligible for continued coverage under Cal-COBRA, up to a total of 36 months of continuation coverage. AB 1401 applies to individuals who began receiving Federal COBRA or Cal-COBRA coverage after January 1, 2003; therefore, the first extensions of coverage due to AB 1401 will take effect in June 2004. Although the insurance carrier is responsible for the administration of Cal-COBRA, employers are responsible for amending notices to inform employees about the state
