California health insurance - Health insurance in California - CalCobra Extension

California CalCobra Extension

Q: What is Cal-COBRA and how is it different from federal COBRA?

Cal-COBRA is a California state law that allows employees of smaller employers (typically 2–19 employees) to continue group health coverage after losing it, whereas federal COBRA generally applies to employers with 20 or more employees. Cal-COBRA can also serve as an extension after federal COBRA ends, providing up to 18 additional months of continuation coverage.

Q: Can I extend my COBRA coverage in California after the federal 18 months run out?

In many cases, yes — California's Cal-COBRA law may allow eligible individuals to extend their coverage for up to an additional 18 months after federal COBRA ends. To confirm your eligibility and current status, you'll need to contact your COBRA carrier or your employer's HR department directly.

Q: Is Cal-COBRA guaranteed issue?

Yes, Cal-COBRA is generally guaranteed issue, meaning you typically cannot be denied coverage based on health status — the same protection federal COBRA affords. This can be an important consideration if you have pre-existing conditions and need to bridge a gap in employer coverage.

Q: Should I take Cal-COBRA or switch to Covered California instead?

It depends on your situation — losing employer coverage is a qualifying life event that opens a Special Enrollment Period for Covered California, so you can compare both options. Premiums, plan benefits, and any available subsidies differ, so it's worth getting a Covered California quote alongside your COBRA costs before deciding.

Q: How do I check if Cal-COBRA is available to me?

To check your Cal-COBRA eligibility or account status, contact your COBRA carrier or your company's HR department directly — insurance agents do not have access to individual COBRA accounts. A licensed agent can, however, help you compare Cal-COBRA to other California coverage options at no cost to you.

I Lost Employer Coverage...What Are My Options!? Covered Ca vs Cobra - Watch on YouTube

To check into Cal-Cobra options or status, you must contact your Cobra carrier or company HR department.

We do not have access to your account as agents.

When To Take The Cal Cobra Extension

Unfortunately, there have been a lot of questions we have fielded on California Cobra over the past decade due to the economy.

For a quick recap, Cobra in continuation of group health insurance loses group health insurance either voluntarily or due to termination.

The good news is that people with health issues who might not qualify for coverage on the individual and family market have a continuation option which is guaranteed issue.

This option is generally not a cheap one and provides a real eye opener on the true cost of their health benefits provided by the prior company.

California never leaves anything alone and this is true for Cobra which is a Federal program.

Their answer is Cal-Cobra and many people are not aware of this option.

Let's take a look at Cal-Cobra and whether it might a good option for you.

You can always run your Covered Ca quote here:

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Another 18 months of Cobra coverage

Cobra typically runs for 18 months for most cases although some people might get 36 months due to special circumstances.

When your Cobra exhausts, you may be eligible for another 18 month period of the same coverage through a Cal-Cobra extension.

If the company is eligible (generally requires being domiciled in California), employees can elect a Cal-Cobra extension when they run out of the original 18 months.

Just like Cobra, Cal-Cobra requires that the underlying group health plan continues in force.

If the company cancels the plan all together (not just a change to another carrier) or goes out of business, the Cobra and Cal-cobra coverage will go away as well.

In this case, a person may be eligible for HIPAA coverage which is guaranteed issue.

How do you find out if you are eligible for a Cal-Cobra extension.

Checking if Cal-Cobra is available to you

The best approach is to ask your health insurance carrier or HR department.

If the person doesn't sound to familiar with the question, don't take their answer at face value since many people are still new to the term even though it's been around for years.

We have heard from many clients that they had to inquire a few times before getting a solid (and correct) answer.

Make sure to use the term "Cal Cobra Extension" so there is no confusion over what you're asking about.

When does it make sense to take a Cal-Cobra extension?

Cal-Cobra is Guaranteed issue, the same benefit that Cobra affords

This is the deal.

Cobra and therefore Cal-Cobra which is the same coverage at generally the same price (might include 10% increase due to administration costs) are usually used by people who are unable to qualify for the individual and family market plans based on health.

Currently (and this will change with health reform Jan 1st), individual and family plans are about 1/2 the cost for comparable coverage versus group health plans but they are also medically underwritten which means you need to be in good health to qualify.

If a person can qualify based on health, they will usually take individual family coverage and save the money.

If not, they will elect Cobra (and Cal-Cobra) at the higher cost but with no medical underwriting.

You can run your individual family quote here if you feel you can qualify based on health.

Otherwise, check into Cobra and Cal-Cobra rates and eligibility.

How does Health Reform affect Cobra and Cal-Cobra?

You can access the online application here:

Health reform will make many current options obsolete

It's hard to see how Cobra and Cal-Cobra will be needed now that we have Covered Ca guaranteed issue options.

There is one big caveat there.

The Individual and Family (Covered Ca) networks of doctors will be much smaller than most group plans.

The list of formulary drugs will also be smaller.

All plans on the individual family market will be guaranteed issue (regardless of health) and the rates on the individual market will likely rise to where group coverage is.

More detail on Cobra versus Covered California.

Cobra was intended as a safety net for people losing group health. This net will largely not be needed going forward.

It will still exist but the need for it might not.

Frequently Asked Questions

▸ What is Cal-COBRA and how is it different from federal COBRA?

▸ Can I extend my COBRA coverage in California after the federal 18 months run out?

▸ Is Cal-COBRA guaranteed issue?

▸ Should I take Cal-COBRA or switch to Covered California instead?

▸ How do I check if Cal-COBRA is available to me?

The answers above are general information about California health insurance and may change as rates, plans, and rules are updated each year. They are not a substitute for personalized advice. For current, personalized guidance, please contact us, email help@calhealth.net, or call 800-320-6269. Serving California since 1994.