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COBRA and CAL-COBRA Information
This information was compiled from The Department of Managed Healthcare. Please use this content solely for informational purposes. If you have further questions, please contact Benefit Studio or your California health insurance provider.
LAW- The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a federal law that involves employers (with 20 or more employees) who offer group health plans. By this law, employees are permitted to keep their group health insurance even if their job or hours are cut. Employees may keep the health insurance for 18 months or more but are still required to pay the health insurance premium. Some may qualify for the health insurance coverage for an extended period of time, depending on the qualifying event.
Indemnity policies, PPOs, HMOs and self-insured plans are all eligible for the COBRA extension. Federal government employees, church plans, and individual health insurance plans are exempt from the COBRA extension.
The American Recovery and Reinvestment Act (ARRA) was also designed to help individuals and their dependents that have lost jobs between September 1, 2008 and December 31, 2009. The ARRA reduces the COBRA health insurance premium for up to 65% for a period of up to 9 months. Individuals may also be able to transfer to less expensive health insurance coverage.
To find an Individual or Family Health Insurance plan that is right for you, click here.
Cal-COBRA is a law in California that is similar to the federal COBRA law, only it applies to companies covering health insurance for 2 to 19 employees. Individuals may keep their health insurance coverage for up to a total of 36 months.
Indemnity policies, PPOs and HMOs are all eligible for Cal-COBRA. Church plans are also eligible, unlike federal COBRA. However, self-insured plans and individual health insurance plans are not covered.
Under the ARRA, those eligible for Cal-COBRA may also have a reduction in health insurance premiums available. Individuals may also change to less costly health insurance plan, if the employer permits.
Cal-COBRA is also available to individuals who exhaust their federal COBRA. Under Cal-COBRA, individuals may buy 18 additional months of health insurance coverage after their initial 18 months of COBRA has expired.
To learn about other Small Business Group Health Insurance options, click here.
Frequently Asked Questions
Is there a deadline to sign up for COBRA or Cal-COBRA?
You have 60 days after notification of your eligibility to sign up. If you miss your deadline, you may lose your eligibility for COBRA or Cal-COBRA. If you do not receive your notification via mail, contact your last employer or health care provider.
Who can enroll in Federal COBRA or Cal-COBRA?
You could be eligible for COBRA if you have health insurance through an employer with 20 or more employees.
You could be eligible for Cal-COBRA if you have health insurance through an employer with 2 to 19 employees.
In order to be eligible for either, loss of health insurance must occur due to one or more of the following qualifying events:
• The employee’s job is terminated
• The employee’s hours are decreased
• You divorce or have a legal separation with the employee
• You are no longer a qualified dependent of the employee
• The employee registers for Medicare
• The employee passes away
How do I sign up for Federal COBRA or Cal-COBRA?
Within 60 days of notice, you can notify the health insurance company in writing that you wish to sign up for COBRA or Cal-COBRA. The health plan company will then send you a notice describing how to sign up and your health insurance premium amount.
Be sure to send in all information to the correct health insurance location before the deadline. Be sure to include the correct amount for your health insurance premium also before the deadline.
Can I get Cal-COBRA after my Federal COBRA has expired?
You possibly can receive Cal-COBRA benefits after federal COBRA. If your federal COBRA lasted for 18 months, you may be able to obtain an extended 18 months with Cal-COBRA, for a total of 36 months. However, if your federal COBRA lasted for a total of 36 months, you are not eligible for Cal-COBRA.
What are the benefits under federal COBRA and Cal-COBRA?
• Individuals under COBRA and Cal-COBRA have the same benefits as other employees that have the same health insurance
plan.
• If employees have open enrollment periods that allow them to change health insurance plans, that benefit is available to you as
well.
• If the employer changes the employees’ health insurance plan, that change includes your health insurance plan as well.
• There are no restrictions due to pre-existing health conditions.
• If your group plan offers a specialized health insurance plan that includes benefits such as dental or vision, the health insurance
benefits will also be offered to you. However, you will lose eligibility if you switch to a Cal-COBRA plan from a federal COBRA
plan.
When will Federal COBRA and Cal-COBRA end?
• The time period ends (Cannot exceed 36 months in either program or a combination of the two)
• You fail to pay health insurance premiums on time
• The employer ceases to offer any health insurance plans
• You move beyond the health insurance plan’s service area
• You enroll (or become eligible) in Medicare
• You enroll in an alternate health care plan
Who is ineligible to enroll in Cal-COBRA or federal COBRA?
• Those enrolled in (or become eligible for) Medicare
• Those fired for gross misconduct
• Those who failed to enroll during the given time period
• Those who did not pay their health insurance premiums before the deadline
• Those covered by another health insurance plan
Is it possible to continue health insurance coverage after federal COBRA or Cal-COBRA ends?
Yes. There are many choices regarding continuing your health insurance plan. You may enroll in a HIPAA plan, which provides opportunities for eligible individuals who have recently lost their employer’s group health insurance benefits. HIPAA gives individuals the opportunity to purchase health insurance, regardless of a pre-existing health condition. Another option after federal COBRA or Cal-COBRA ends is to exchange your group coverage for an individual health insurance plan. Contact Benefit Studio for your personal health insurance plan options.
For more FAQ about your Health Insurance, click here.
This information was compiled from The Department of Managed Healthcare. Please use this information solely for informational purposes. If you have further questions, please contact Benefit Studio or your healthcare provider.
LAW- The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a federal law that involves employers (with 20 or more employees) who offer group health plans. By this law, employees are permitted to keep their group health insurance even if their job or hours are cut. Employees may keep the health insurance for 18 months or more but are still required to pay the health insurance premium. Some may qualify for the health insurance coverage for an extended period of time, depending on the qualifying event.
Indemnity policies, PPOs, HMOs and self-insured plans are all eligible for the COBRA extension. Federal government employees, church plans, and individual health insurance plans are exempt from the COBRA extension.
The American Recovery and Reinvestment Act (ARRA) was also designed to help individuals and their dependents that have lost jobs between September 1, 2008 and December 31, 2009. The ARRA reduces the COBRA health insurance premium for up to 65% for a period of up to 9 months. Individuals may also be able to transfer to less expensive health insurance coverage.
To find an Individual or Family Health Insurance plan that is right for you, click here.
Cal-COBRA is a law in California that is similar to the federal COBRA law, only it applies to companies covering health insurance for 2 to 19 employees. Individuals may keep their health insurance coverage for up to a total of 36 months.
Indemnity policies, PPOs and HMOs are all eligible for Cal-COBRA. Church plans are also eligible, unlike federal COBRA. However, self-insured plans and individual health insurance plans are not covered.
Under the ARRA, those eligible for Cal-COBRA may also have a reduction in health insurance premiums available. Individuals may also change to less costly health insurance plan, if the employer permits.
Cal-COBRA is also available to individuals who exhaust their federal COBRA. Under Cal-COBRA, individuals may buy 18 additional months of health insurance coverage after their initial 18 months of COBRA has expired.
To learn about other Small Business Group Health Insurance options, click here.
Frequently Asked Questions
Is there a deadline to sign up for COBRA or Cal-COBRA?
You have 60 days after notification of your eligibility to sign up. If you miss your deadline, you may lose your eligibility for COBRA or Cal-COBRA. If you do not receive your notification via mail, contact your last employer or health care provider.
Who can enroll in Federal COBRA or Cal-COBRA?
You could be eligible for COBRA if you have health insurance through an employer with 20 or more employees.
You could be eligible for Cal-COBRA if you have health insurance through an employer with 2 to 19 employees.
In order to be eligible for either, loss of health insurance must occur due to one or more of the following qualifying events:
• The employee’s job is terminated
• The employee’s hours are decreased
• You divorce or have a legal separation with the employee
• You are no longer a qualified dependent of the employee
• The employee registers for Medicare
• The employee passes away
How do I sign up for Federal COBRA or Cal-COBRA?
Within 60 days of notice, you can notify the health insurance company in writing that you wish to sign up for COBRA or Cal-COBRA. The health plan company will then send you a notice describing how to sign up and your health insurance premium amount.
Be sure to send in all information to the correct health insurance location before the deadline. Be sure to include the correct amount for your health insurance premium also before the deadline.
Can I get Cal-COBRA after my Federal COBRA has expired?
You possibly can receive Cal-COBRA benefits after federal COBRA. If your federal COBRA lasted for 18 months, you may be able to obtain an extended 18 months with Cal-COBRA, for a total of 36 months. However, if your federal COBRA lasted for a total of 36 months, you are not eligible for Cal-COBRA.
What are the benefits under federal COBRA and Cal-COBRA?
• Individuals under COBRA and Cal-COBRA have the same benefits as other employees that have the same health insurance
plan.
• If employees have open enrollment periods that allow them to change health insurance plans, that benefit is available to you as
well.
• If the employer changes the employees’ health insurance plan, that change includes your health insurance plan as well.
• There are no restrictions due to pre-existing health conditions.
• If your group plan offers a specialized health insurance plan that includes benefits such as dental or vision, the health insurance
benefits will also be offered to you. However, you will lose eligibility if you switch to a Cal-COBRA plan from a federal COBRA
plan.
When will Federal COBRA and Cal-COBRA end?
• The time period ends (Cannot exceed 36 months in either program or a combination of the two)
• You fail to pay health insurance premiums on time
• The employer ceases to offer any health insurance plans
• You move beyond the health insurance plan’s service area
• You enroll (or become eligible) in Medicare
• You enroll in an alternate health care plan
Who is ineligible to enroll in Cal-COBRA or federal COBRA?
• Those enrolled in (or become eligible for) Medicare
• Those fired for gross misconduct
• Those who failed to enroll during the given time period
• Those who did not pay their health insurance premiums before the deadline
• Those covered by another health insurance plan
Is it possible to continue health insurance coverage after federal COBRA or Cal-COBRA ends?
Yes. There are many choices regarding continuing your health insurance plan. You may enroll in a HIPAA plan, which provides opportunities for eligible individuals who have recently lost their employer’s group health insurance benefits. HIPAA gives individuals the opportunity to purchase health insurance, regardless of a pre-existing health condition. Another option after federal COBRA or Cal-COBRA ends is to exchange your group coverage for an individual health insurance plan. Contact Benefit Studio for your personal health insurance plan options.
For more FAQ about your Health Insurance, click here.
This information was compiled from The Department of Managed Healthcare. Please use this information solely for informational purposes. If you have further questions, please contact Benefit Studio or your healthcare provider.
