State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Cal-COBRA, California's group health continuation law, applies to group health plans sponsored by employers with:
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Cal-COBRA extends continuation coverage to employees of California employers with 2 to 19 eligible employees, a market segment not reached by federal COBRA, which applies to employers of 20 or more. It allows eligible employees and covered dependents to continue group health coverage for up to 36 months after a qualifying event, paying the group premium. This state-law gap-filler is a distinct California-specific rule examined under AH-III.B.4, alongside federal COBRA and the other legislative influences on group medical coverage.
Why the other options are wrong
- B) Employers with 1,000 or more employees are covered by federal COBRA, not the small-employer Cal-COBRA rules.
- C) Cal-COBRA covers groups of 2 to 19 eligible employees; sole proprietors with no employees do not fit the statute.
- D) Employers with 101 or more employees are served by federal COBRA because of their size.
Memory hook
Small shop (2-19) = Cal-COBRA; big shop (20+) = federal COBRA.