Understanding COBRA Insurance in California

Understanding Cal-COBRA

Cal-COBRA, also known as California’s Mini-COBRA, is a state program that extends health coverage continuation rights to employees of smaller companies with 2 to 19 employees. Unlike federal COBRA, which applies to larger employers, Cal-COBRA ensures that employees of small businesses have the option to continue their health insurance for up to 36 months after leaving their job or experiencing a reduction in work hours. This extension can be especially beneficial for those who need more time to secure alternative coverage or transition to a new job with health benefits.

Eligibility for Cal-COBRA is typically extended to individuals who were enrolled in their employer’s health plan and lost coverage due to employment termination or reduction in hours, provided it wasn’t for gross misconduct. The cost of Cal-COBRA coverage is generally higher than employee contributions during employment, as individuals must pay the full premium plus a 10% administrative fee. Despite this, Cal-COBRA remains a vital safety net for maintaining continuous health coverage, helping prevent gaps that could lead to significant out-of-pocket medical expenses.

About Cal-COBRA

Cal-COBRA, established under the California Continuation Benefits Replacement Act of 1997, extends health coverage continuation rights similar to federal COBRA but is specifically designed for employees of smaller companies with 2 to 19 employees.

The statute governing Cal-COBRA can be found in the California Insurance Code, Sections 10128.50 to 10128.59

What to Do When Federal COBRA or Cal-COBRA Options Are Exhausted

When your Federal COBRA or Cal-COBRA options are exhausted, you can explore several alternatives:

1. Apply for Individual Coverage through Covered California: You may be eligible to obtain health insurance through Covered California, the state’s Health Benefit Exchange. Visit Covered California or call (800) 300-1506 for assistance.
2. Direct Application through Health Plans: Some health plans offer individual coverage options directly, outside of the exchange. Contacting these health plans can provide additional coverage options.
3. Seek Assistance from Health Consumer Alliance (HCA): For free assistance in finding and applying for health coverage, including Medi-Cal and other government programs, you can reach out to your local Health Consumer Alliance Partner. The HCA can be contacted at (888) 804-3536 for personalized help.