Explanation of Cal-COBRA
Cal-COBRA (California COBRA) and COBRA are two different
things. COBRA is a federal law that allows employees to keep
their health insurance even if they no longer work for the
company from which you were laid of, fired from or became
eligibale under another qualifying event. COBRA allows them to
keep their former insurance plan for a minimum of 18
months, if the company they worked for had at least 20
employees covered under the company health
plan. Former employees must pay the premiums each
month, as well as a maximum of a 2% administrative
fee, but the benefits are kept at the same level they had
before losing their job.
What are the
Differences?
Cal-COBRA is similar to COBRA, though it is a
California specfic law that encompasses companies of less than
20 employees. For former employees coming from companies with 2
to 19 employees, they may be allowed to keep their
California health insurance plan for up to 36 months. This is
dependent upon certain circumstances, such as reason for being
laid off and other such "qualifying
events". The following are considered a qualifying event
for your eligibility to continue coverage under the Cal-COBRA
plan.
-
If you divorce your spouse who is the employee and
you lose your health coverage.
-
If the employee has their hours cut.
-
If the employee's job comes to an end.
-
If you are not the employee's dependent any
longer.
-
If the employee becomes eligible and enrolls in
Medicare.
Just as there is an available reduction for certain individuals
in the COBRA plan, called the "Cobra Subsidy", the
Cal-COBRA applies to individuals who may not work for a large
company. This is also available for those who have used the
original 18 months they got under the Federal COBRA plan. They
may purchase 18 months of Cobra continuation coverage under the
Cal-COBRA plan.
How Do I Sign
Up?
To sign up for Cal-COBRA and COBRA, you should recieve a letter
from your former employeer if you have hours were cut at
work or you leave your position with a company. The notice
informs you that the coverage is available and it must be
signed up for within 60 days of receiving the notice.
If you divorce or separate from a spouse that is covered under
COBRA or Cal-Cobra, you are no longer considered a dependent so
you must ask that your former spouse's employer to send
you the forms you need. If you opt to take COBRA health
coverage, you will receive a package detailing the coverage and
how much you will need to pay monthly. If you are
eligiable for the COBRA Subsidy, your former
employeer with also send you paperwork about how to apply.
Do the Benefits Differ
Under the Cal COBRA and the COBRA Health Plan?
The benefits you will have when you choose to sign up for the
Cal-COBRA plan are the same benefits that you received while
still working at your former employer. If the company changes
the plan, or changes carriers, you are eligiable for the new
plan so long as your COBRA is still in effect. If there are
certain plans or health benefits that are offered to
current employees, you are eligiable to partake in them as
well.
Facts about California
Cobra vs. COBRA
Both COBRA and Cal-COBRA are for only non-government employers.
The difference is the number of employees. The beneficiaries
may include the husband/wife of the employed person as well as
their dependent children. The employer must let employees know
that benefits are available within 30 days of a qualifying
event. The employer or the beneficiary must let the health plan
or the employer know the benefits are available within 60 days
of a qualifying event.
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