California employees of small employers whose group health coverage terminates — and who are not covered by federal COBRA — may be able to continue their coverage through:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Cal-COBRA is California's continuation coverage law that extends group health coverage for employees of small employers — generally those below the size threshold that triggers federal COBRA — after a qualifying event such as termination of employment. It mirrors the structure of federal COBRA at the state level, preserving access to the same group plan for a limited period while the employee transitions to other coverage. When federal COBRA does not apply because of the employer's size, Cal-COBRA is the correct state-law mechanism for continuation, making A the right answer.
Why the other options are wrong
- B) Medicare Part C is a Medicare Advantage product available to Medicare-eligible persons; it provides no continuation of employment-based group coverage for employees of any size. Medicare Advantage serves Medicare-eligible individuals and provides no employer-plan continuation.
- C) Medi-Cal is a Medicaid program for low-income individuals who meet income and categorical eligibility rules; it is not a continuation of the employer's group plan. Medi-Cal eligibility is income-based and does not continue a terminated employer plan.
- D) Medigap open enrollment rights attach to enrollment in Medicare Part B for those 65 and older, not to the termination of a small employer's group health plan. Medigap rights arise from Part B enrollment and are unrelated to group plan termination.
Memory hook
COBRA is the federal umbrella; Cal-COBRA is the California umbrella for the smaller shops.