Cal-COBRA vs. Federal COBRA
Overview.
| |
Cal-COBRA for California |
Federal COBRA |
| 1 |
For groups with 2–19 employees.
Visit the CA Department of Insurance Web site for more information.
|
For groups with 20+ employees.
Visit the US Department of Labor Web site for more information. |
| 2 |
CoPower will administer Cal-COBRA unless the employer
chooses to administer it. |
Employer administers COBRA plan. |
| 3 |
Employees pay CoPower directly. |
Employees pay their employer directly. |
| 4 |
Fee = Cost of Benefits + 10% |
Fee = Cost of Benefits + 2% |
| Once an employee is established as either
Cal-COBRA or Federal COBRA, their status does not change. |
| COBRA coverage is only applicable for Dental
and Vision coverage. |
Definitions.
Cal-COBRA Coverage in California (for groups with 2–19 employees)
It is the carrier’s responsibility to administer Cal-COBRA enrollees, therefore CoPower, acting on behalf of the carrier, administers the Cal-COBRA accounts. The applications are sent to the former employees (or those whose hours no longer qualify them for the plans) and the enrollees send their applications and payment back to CoPower.
CoPower charges the member an additional 10% to administer the Cal-COBRA. The responsibility of administering Cal-COBRA falls on the carrier, or on CoPower (who administers for the carrier). However, if a group chooses to administer Cal-COBRA themselves, the group must do so for all their employees. New enrollees as of January 1, 2003, in Cal-COBRA will be eligible for up to 36 months of coverage for all qualifying events (AB 1401).
Federal COBRA Coverage (for groups with 20+ employees)
COBRA coverage is an option that an employee can choose once they separate from their former employer. COBRA is the result of a Federal law which states that once employees or dependents lose their benefits due to termination from their employer, divorce, or other factors, they must be offered a continuation of the same benefits for a finite period of time, which may be 18 to 36 months. The employer is responsible for administering Federal COBRA.
| 
Cal-COBRA Requirements for the Employer 
