What is the difference between Federal Cobra and Cal Cobra?
Federal Cobra is offered to employers that have 20+ employees. On Federal Cobra, when an employee looses coverage they will be offered Cobra health benefits, which is a continuation of their employer sponsored plan. Federal Cobra is for an 18 month period. Cal Cobra is offered to California based employers that have fewer than 20 employees. On Cal Cobra when an employee looses coverage, they will be offered Cal Cobra health benefits, which is a continuation of their employer sponsored plan. Cal Cobra is for a 36 month period. What is a HSA (Health Savings Account)?: In an HSA, you contribute money to a special bank account to be used for medical bills. You get a Federal tax deduction on the money you contribute to your HSA, and if you use the money for medical expenses, you pay no Federal tax or penalty on it. The HSA account can also earn Federal tax-free interest. Note: there is no California tax exemption for your HSA contribution, or for the interest the account earns. HSA’s always
