How does Cal-COBRA extend the federal COBRA protections?
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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, found in the California Insurance Code, and it fills the gap left by federal COBRA. Federal COBRA applies only to employers with 20 or more employees, so workers at smaller employers have no federal continuation right. Cal-COBRA grants continuation coverage to employees of small employers whose plans are not subject to federal COBRA, preserving group coverage when a qualifying event such as termination, death, or divorce would otherwise end it. In some situations Cal-COBRA also extends coverage beyond the federal period, providing California workers a stronger safety net.
Why the other options are wrong
- B) Cal-COBRA supplements federal COBRA for plans not reached by it; large employer plans remain governed by federal COBRA, with Cal-COBRA extending coverage in certain cases.
- C) Cal-COBRA is a California law administered by California regulators and insurers, not by the federal Department of Labor.
- D) Cal-COBRA applies to medical benefits under group health plans; it is not limited to dental and vision coverage.
Memory hook
Cal-COBRA catches the small employer that federal COBRA's 20-plus headcount never reached.