Cal-COBRA continuation coverage applies to group health plans of employers with how many employees, and for how long?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Federal COBRA applies to employers with 20 or more employees, leaving smaller firms uncovered. California's Cal-COBRA law closes that gap by requiring group health insurers to offer continuation coverage to employees of employers with 2 to 19 employees, providing up to 36 months of continuation. This extended period is significantly longer than the federal COBRA baseline of 18 months, and it gives employees of small businesses meaningful protection after a qualifying event such as termination or reduction in hours. Like federal COBRA, Cal-COBRA protects covered employees, spouses, registered domestic partners, and dependent children from an abrupt loss of coverage.
Why the other options are wrong
- B) Cal-COBRA starts at two employees, not one, and the continuation period is up to 36 months, not 6.
- C) Employers of 100 or more are well above the small-employer threshold and are governed by federal COBRA rules, not Cal-COBRA.
- D) Employers with 20 to 49 employees are subject to federal COBRA; Cal-COBRA targets the 2-to-19-employee market.
Memory hook
Cal-COBRA: 2 to 19 employees, up to 36 months — the small-shop safety net that federal COBRA never built.