Employees of a small California employer that is not subject to federal COBRA may have group health continuation rights through:
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
California provides its own continuation coverage law, commonly called Cal-COBRA, that extends group health coverage for employees of small employers who are not covered by federal COBRA because their employer has fewer than 20 employees. The state law mirrors COBRA's protections so that losing group coverage does not leave small-business employees without options. Beneficiaries who exhaust federal COBRA may also have Cal-COBRA rights in some circumstances. Continuation coverage is not the same as Medicare, HIPAA portability, or workers' compensation, and it is purchased through the group policy with the employee paying the full premium share.
Why the other options are wrong
- B) Medicare is federal health coverage for people 65 and older or with qualifying disabilities, not a small-group continuation program.
- C) HIPAA portability limits the use of preexisting condition exclusions for those changing group coverage; it does not continue the old plan.
- D) Workers' compensation covers job-related injuries and illnesses, not continuation of group health benefits after leaving a job.
Memory hook
Too small for COBRA? Cal-COBRA is California's safety net for small employer groups.