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Q.What does the Cal-COBRA provide and how long does it last?
A.Cal-COBRA requires that eligible employees, and their spouses and dependant children, receive the same health insurance benefits that the employer provides to its current work force. Cal-COBRA is typically used to continue employer-sponsored health insurance coverage for 36 months after a qualifying event.
During the first 18 months of the 36 month period, the employee is required to pay 110% of the total health insurance premium (which may have been paid, in whole or in part, by the employer). As of January 1, 2003, Cal-COBRA coverage was extended from 18 months to 36 months. During the 18 month extension period, the individual is required to pay 102% of the premium payment.
Covered employees who are 60 years or older when they become eligible for Cal-COBRA and who have worked for the employer for at least 5 years may continue their Cal-COBRA coverage until Medicare eligible.
If an employee is determined to be disabled by the Social Security Administration, Cal-COBRA can be extended from 18 months to 29 months. However, the covered employee in such an instance would be required to pay 150% of the total health insurance premium for the additional 11 month extension period.
Anyone starting COBRA or Cal-COBRA after January 1, 2003 must use all 36 months of eligibility to qualify for HIPAA Guaranteed-Issue or Conversion coverage.
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