California Legislation that protects employees of companies with less than 20 employees. Picks up where the Federal Cobra laws leave off. Carriers are responsible for notification and administration. Premiums can be 10% higher than premiums paid by employer. It is important to acknowledge that the Cal-Cobra entitlements are connected to the master plan of the company’s insurance. Therefore if the company no longer offers health insurance, there will be no Cal-Cobra health plan available to the former employee. This is true for Cobra participants as well.
COBRA
Consolidated Omnibus Budget Reconciliation Act. Federal Legislation passed in the early 80’s. This ruling provided extension of company coverage to employees who left their employment. The premiums for coverage can not be any higher than 2% of what the employer paid on employee’s health insurance. The employees have the opportunity to pay for their own group coverage for 18 months. Administration and notification are responsibilities of the employer.