State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Cal-COBRA differs from federal COBRA primarily because it:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Cal-COBRA is California's state continuation coverage law. It grants continuation rights to employees of smaller California employers whose group health plans are not subject to federal COBRA, which generally applies to employers with 20 or more employees. Like COBRA, Cal-COBRA requires the former employee to pay the full premium. It is a California statute administered by the state, not a federal program, and it concerns group health coverage, not individual policies.
Why the other options are wrong
- B) Cal-COBRA continuation coverage is not free; the employee pays the full premium for the continued coverage.
- C) Cal-COBRA applies to group health plans of California employers, not to individually purchased health policies.
- D) Cal-COBRA is state law, not a federally funded program; it fills the gap left by federal COBRA for smaller employer groups.
Memory hook
Federal COBRA stops at small employers; Cal-COBRA steps in for the little guys and keeps their coverage alive.