An employee of a small California employer that is not subject to federal COBRA loses group health coverage when employment ends. Under Cal-COBRA, the employee is entitled to:

Why C is correct

Cal-COBRA provides continuation coverage to employees and qualified dependents of small California employers whose groups are too small to trigger federal COBRA. When an employee loses coverage due to a qualifying event such as termination of employment, the group policy must offer the same coverage on a continued basis for a specified period at the applicable premium, often a premium the employee pays. Federal COBRA's absence does not leave the employee without protection in California.

Why the other options are wrong

• A) Continuation under Cal-COBRA requires payment of the premium; it is not free, and it does not convert to an individual policy automatically.
• B) Covered California is an ACA marketplace option, but it is not the mandated continuation remedy when group coverage ends.
• D) California law steps in where federal COBRA does not reach, so continuation rights do exist for small employer groups.

Memory hook

Too small for federal COBRA? Cal-COBRA still gives continuation coverage. Small employers, same protection.