Understanding Cal-COBRA

In California, individuals who lose job-based health coverage can opt for COBRA, which allows them to continue their employer’s plan at full cost. However, California also offers a state continuation program known as Cal-COBRA, which applies to employers with fewer than 20 employees.

California’s Mini-COBRA Law

Cal-COBRA is California’s version of the federal COBRA continuation coverage, designed specifically for employees of small businesses with 2 to 19 employees. It allows eligible individuals to continue their group health insurance coverage for up to 36 months after losing coverage due to job loss, reduction in work hours, or other qualifying life events.

While federal COBRA applies only to employers with 20 or more employees, Cal-COBRA fills the gap for smaller employers not subject to federal requirements. Enrollees must pay the full monthly premium themselves, plus a 10% administrative fee. This ensures continued access to the same health benefits previously provided under the employer’s plan.

Eligibility: To qualify, you must have been covered under your employer’s fully insured group health plan at the time coverage was lost. The loss must not be due to gross misconduct. Cal-COBRA applies only to fully insured plans regulated by the California Department of Insurance—it does not apply to self-funded plans or out-of-state coverage.

Alternative Low Cost Medical Plans in California

Continuing an employer plan in California with Mini-COBRA is around $728/mo, per individual. If COBRA is unavailable or is outside of your budget, you do have affordable other options for health coverage. See below:

The cost of health insurance is determined by your age and state of residency.