Cobra Insurance California

In California, COBRA insurance is a continuation of health benefits provided to employees who have lost their jobs or had their work hours reduced. COBRA stands for Consolidated Omnibus Budget Reconciliation Act, a federal law that requires employers to offer continued health insurance coverage to employees who would otherwise lose it.

Who is Eligible for Cobra Insurance in California?

COBRA insurance is available to anyone who has lost or left a job, including those who:

  • Quit voluntarily
  • Were laid off
  • Had their hours reduced
  • Were fired for reasons other than gross misconduct

Additionally, the employee must have been enrolled in the employer’s health insurance plan before leaving the job.

Spouses and dependents of the employee are also eligible for COBRA coverage if they were on the employer’s plan at the time of the employee’s job loss or reduction in hours.

How Long Does Cobra Insurance Last?

COBRA insurance typically lasts for 18 months from the date of the job loss or reduction in hours. However, in some cases, it can be extended to up to 36 months if certain conditions are met.

If the employee becomes eligible for Medicare or gets a new job with health insurance coverage, they are no longer eligible for COBRA insurance.

How Much Does Cobra Insurance Cost in California?

The cost of COBRA insurance in California can vary depending on the employer’s plan and the amount of coverage the employee had before leaving the job.

Typically, the employee is responsible for paying the full premium amount plus a 2% administrative fee. This can be expensive, as employers often subsidize a portion of the health insurance premiums for their employees.

How to Enroll in Cobra Insurance in California?

Employers are required to notify employees about their COBRA rights within 14 days of the employee’s job loss or reduction in hours. The employee then has 60 days to elect to enroll in COBRA coverage.

If the employee elects to enroll in COBRA coverage, they must pay the first premium within 45 days of electing coverage. Failure to pay the premium can result in the loss of COBRA coverage.

FAQ

Question
Answer
What is COBRA insurance?
COBRA insurance is a continuation of health benefits provided to employees who have lost their jobs or had their work hours reduced.
Who is eligible for COBRA insurance in California?
Anyone who has lost or left a job, including those who quit voluntarily, were laid off, had their hours reduced, or were fired for reasons other than gross misconduct.
How long does COBRA insurance last?
Typically, COBRA insurance lasts for 18 months from the date of the job loss or reduction in hours. However, it can be extended to up to 36 months in some cases.
How much does COBRA insurance cost in California?
The cost of COBRA insurance in California can vary depending on the employer’s plan and the amount of coverage the employee had before leaving the job.
How to enroll in COBRA insurance in California?
Employers are required to notify employees about their COBRA rights within 14 days of the employee’s job loss or reduction in hours. The employee then has 60 days to elect to enroll in COBRA coverage.