California's continuation coverage law (Cal-COBRA) differs from federal COBRA primarily because it:
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
Federal COBRA applies only to employers of 20 or more employees, leaving small employers uncovered. Cal-COBRA closes that gap: it extends continuation coverage rights to employees of small employers — generally those with fewer than 20 employees — whose group health plans would otherwise end at termination, allowing continuation of coverage for up to 36 months. As with federal COBRA, the qualified beneficiary pays the premium; the coverage is neither indefinite nor free. Cal-COBRA is a California state-law program. It is a state-level complement to the federal rule.
Why the other options are wrong
- B) Cal-COBRA serves the small-employer market that federal COBRA misses; it does not apply only to large employers. Cal-COBRA fills the gap left by the federal 20-employee threshold rule itself.
- C) Cal-COBRA is enacted and administered at the state level in California, not by the federal Department of Labor. It is a California program administered by the state, not federally.
- D) Continuation is limited in duration (up to 36 months) and is paid for by the beneficiary, not provided indefinitely or free. The beneficiary pays the full premium during the continuation period.
Memory hook
Federal COBRA skips the small shops; Cal-COBRA steps in for employers under 20 and offers up to 36 months of continuation.