What is the difference between federal COBRA and cal COBRA?
Asked by: Prof. Angus Herman III | Last update: June 22, 2025Score: 4.6/5 (6 votes)
Is Cal-COBRA more expensive?
COBRA and Cal-COBRA
If you get COBRA, you must pay for the entire premium, including any portion that your employer may have paid in the past. This means your payment is often more expensive than what you paid as an employee.
What is a federal COBRA?
The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers and their families who lose their health benefits the right to choose to continue group health benefits provided by their group health plan for limited periods of time under certain circumstances such as voluntary or involuntary job loss, ...
What is a cal-COBRA notice?
The California Continuation Benefits Replacement Act (Cal-COBRA) specifies the amount a qualified beneficiary can be charged for continuation coverage, how long the continuation coverage can last, and when coverage can be terminated.
What is the difference between state and federal cobras?
State COBRA applies to businesses with less than 20 full-time employees and FTEs for 50 percent of the previous calendar year. Federal COBRA applies to companies with at least 20 full-time employees or FTEs for 50 percent of the previous calendar year.
COBRA Overview - What's the Difference Between Federal COBRA and Cal COBRA
What is Cal-COBRA vs Federal COBRA?
Cal-COBRA covers indemnity policies, PPOs and HMOs, but not self-insured plans. Unlike federal COBRA, church plans are covered under Cal-COBRA. Federal COBRA generally extends health coverage for 18 months.
What is COBRA cal?
What is Cal-COBRA? Cal-COBRA is a California Law that lets you keep your group health plan when your job ends or your hours are cut. It may also be available to people who have exhausted their Federal COBRA.
Who pays for Cal-COBRA?
COBRA Premiums
If you have health coverage through COBRA or CalCOBRA, you must pay the premiums yourself. Any premium for COBRA is in addition to any premiums you pay for Medicare and is not reduced when COBRA is secondary coverage to Medicare. For COBRA, you will pay 102% of the premium the employer pays.
Who sends Cal-COBRA paperwork?
Cal-COBRA administration may be handled by either the employer or a third-party administrator, but as the legal obligation still falls to the employer to comply with the law, all employers should make sure these administrative steps are being completed and done so in a timely manner.
What plans are subject to Cal-COBRA?
Indemnity policies, PPOs, HMOs, and self-insured plans are all eligible for COBRA extension; however, federal government employee plans and church plans are exempt from COBRA.
What is the COBRA loophole?
If you decide to enroll in COBRA health insurance, your coverage will be retroactive, meaning it will apply to any medical bills incurred during the 60-day decision period. This loophole can save you money by avoiding premium payments unless you actually need care during this time.
Am I subject to federal COBRA?
COBRA generally applies to all private-sector group health plans maintained by employers that had at least 20 employees on more than 50 percent of its typical business days in the previous calendar year.
Does Cal COBRA apply to dental and vision?
Cal-COBRA applies to medical care plans, but not dental or vision care plans. Cal-COBRA coverage applies only to coverage under an insured plan or HMO, and not under a self-insured plan.
Is there a cheaper option than COBRA?
Marketplace insurance, available through the Affordable Care Act, often offers more affordable premiums than COBRA.
How much should I expect to pay for COBRA?
Based on plan and state, COBRA costs range from about $400 to $700 per month and are based on the following: Your previous monthly insurance contribution. Your recent employer's monthly insurance contribution.
Do I use my old insurance card for COBRA?
Will I be receiving a new insurance card or do I still use my old one? Since COBRA insurance is a continuation of your previous employer's group health policy, you will be able to use the same ID cards. The old card will be re-activated once your employer has received your COBRA payment.
How long can you stay on Cal-COBRA?
Individuals who are employed by California employers at the time they become eligible for COBRA continuation coverage and whose COBRA coverage would otherwise end in 18 months may, under Cal-COBRA, continue their coverage with the same group carrier or HMO for up to a total of 36 months.
Can I go to the doctor while waiting for a COBRA?
You will be reimbursed for any medical bills that you pay out-of-pocket during this period. Contact the plan administrator for more information on filing a claim for benefits. Complete plan rules are available from the employer's benefits offices.
Who pays for COBRA after termination?
(California passed a similar law known as “Cal-COBRA.”) Under COBRA, the group plan health insurance plan made available to terminated workers provides the exact same benefits as they would receive if they were still a member of the group, except that the employees have to pay the employer's cost of providing the ...
Are COBRA payments considered income?
If the employee receives the funds and can provide supporting documentation of the payment to the insurer, the funds are also nontaxable. If there is no verification that the employee used the funds to pay for the premiums, the amounts are included in wages and are taxable.
Does health insurance end immediately after termination?
Employers aren't required to continue providing health insurance coverage after termination, so most workers lose coverage immediately or at the end of their last month of employment. However, most companies must allow you to stay on your plan through COBRA continuation coverage.
Why is COBRA so expensive?
COBRA coverage is not cheap.
Why? Because you're now responsible for paying your portion of your health insurance: The cost your employer contributed to your premium, in addition to the 2% service fee on the cost of your insurance.
How to cancel Cal COBRA?
To cancel your COBRA plan you will need to notify your previous employer or the plan administrator in writing, requesting to terminate the insurance. The plan administrator is also who you've made your premium payments to.
Can you drop COBRA and get Obamacare?
Can I drop it during Marketplace Open Enrollment and enroll in a Marketplace plan instead? During Marketplace Open Enrollment, you can sign up for a Marketplace plan even if you already have COBRA. You will have to drop your COBRA coverage effective on the date your new Marketplace plan coverage begins.