COBRA and CalCOBRA
What is COBRA?
COBRA is a Federal law that allows you to temporarily continue your group health benefits when your coverage would otherwise end. Circumstances such as job loss, reduced hours, divorce, or death of the actively employed spouse may qualify a person for COBRA. COBRA laws only apply to employers with at least 20 employees.
Top Of Page
What is CalCOBRA?
CalCOBRA is a state law that allows you to temporarily continue your group health benefits through a company with 2 to 19 employees when your coverage would otherwise end. Circumstances such as job loss, reduced hours, divorce, or death of the actively employed spouse may qualify a person for CalCOBRA.
Top Of Page
What do COBRA and CalCOBRA cover?
COBRA coverage will generally be the same as your group health coverage. If the employer changes the group health benefits, your COBRA or CalCOBRA benefits will also change.
How long can I get COBRA and CalCOBRA?
The maximum length of coverage for COBRA and CalCOBRA can vary greatly depending on your specific circumstances. In most instances, you may be covered by COBRA and CalCOBRA from 18 to 36 months. For more information, contact the California Department of Insurance online at www.insurance.ca.gov or call HICAP at 1-800-434-0222 for a one-on-one appointment.
Top Of Page
How much do COBRA and CalCOBRA cost?
Employers often contribute to the costs of group healthcare coverage. With COBRA and CalCOBRA, however, you must pay the full cost of the premium plus an additional administration fee. For COBRA, your premium is 102 percent of the employer's full premium. Your premium for CalCOBRA can range from 110 to 213 percent of the employer's full premium depending on how the group rate is calculated. If the employer's premium changes, your COBRA or CalCOBRA premium will change, as well.
Top Of Page
Medicare and COBRA
If you become eligible for Medicare while you are already on COBRA or CalCOBRA, the COBRA or CalCOBRA coverage will end. If your spouse is also on COBRA or CalCOBRA, however, they may qualify for continuing coverage.
If you already have Medicare, you cannot become eligible for CalCOBRA coverage.
If you have Medicare and then become eligible for COBRA coverage, however, you have two options:
- Pay for both Medicare and COBRA coverage.
- Decline COBRA and have Medicare only.
Call HICAP at 1-800-434-0222 to schedule a one-on-one appointment to discuss your specific circumstances and options.
Top Of Page
What about COBRA, CalCOBRA, and Special Enrollment Periods (SEP) for Medicare Parts B and D?
If you or your spouse delayed Part B enrollment due to group health coverage based on active employment, you only have an 8 month Special Enrollment Period (SEP) to sign up for Part B without a penalty when the employment ends. If you elect COBRA and wait until your COBRA eligibility ends before enrolling in Medicare Part B, you may be required to pay the late enrollment penalty and the effective date of your benefits may be delayed.
If your COBRA plan has creditable prescription drug coverage (coverage considered at least equivalent to Medicare Part D benefits), you will have a limited Special Enrollment Period (SEP) to join a Medicare drug plan without penalty when the COBRA coverage ends. See Enrollment Periods/Guaranteed Rights for more information.
Call HICAP at 1-800-434-0222 to schedule a one-on-one appointment to discuss your specific circumstances and options.
.
Top Of Page