CAL COBRA is an extension of the COBRA law applicable to
California-based small employer groups of 2 to 19 enrolled
employees. CAL COBRA has three major distinctions from Federal
COBRA. First, an employee with five or more years of service
who is at least age 60 may continue their COBRA benefits to
age 65 under CAL-COBRA. Second, the group health insurance
carrier is responsible for COBRA administration for employers
of this size and typically offer basic COBRA Insurance services.
Finally, under Cal-COBRA the carrier may elect to charge a
previous employee up to 110% of the premium charged for the
Typically benefits are extended for 18 months. AB 1401 allows
for an additional 18 months extension if the recipient meets
the Social Security Standard for disability. Under the extension,
the electing employee or dependent must pay up to 110% of
the premium the employer is charged for the coverage.
There are two options available to you to ensure your compliance.
First, you can select our full-service option. Our full-service
COBRA option is like having a COBRA Insurance compliance officer
on your team. Everything is Internet-based including submission
forms, reports, account maintenance and includes an updated
on-line resource center with the latest rulings and legislation.
Alternatively, you can opt to self-administer your COBRA
Insurance compliance and for a small fee, we will send you
a CD-ROM with all you will need in order to do so. We will
also update your CD-ROM regularly so you do not miss any new
developments or legislation.
Be sure to discuss these services with your Account Executive
while installing your group health insurance product.
Me About COBRA Insurance