Federal COBRA / Cal-COBRA

Federal COBRA is legislation that applies to employers and group health plans of 20 or more employees. The purpose of this law is to allow continuation of health insurance when coverage is lost due to specific qualifying events. For example, reduction in hours, termination of employment, divorce, death, or loss of dependent status. The premium is no longer paid by the employer, but the same benefits can be maintained for at least 18 months for most cases and up to 36 months for some.

Cal-COBRA is a California law that applies to employers and group health plans that cover 2-19 employees. Similar to Federal COBRA, the purpose is to offer the employee and their dependants the same employer sponsored health insurance benefits provided to the current work force, up to 18 months. When COBRA benefits end, Cal-COBRA can also be used as an extension to Federal COBRA.

If the subscriber meets Social Security’s rules for disability, COBRA and Cal-COBRA can be extended to 29 months.