Losing a position or having your hours cut can bring no end of worry to mind, one of which may be your health insurance coverage. While the Consolidated Omnibus Budget Reconciliation Act, otherwise known as COBRA, was signed into law in 1985, there are many who don’t understand how it works, and that’s perfectly okay. Sackett & Associates Insurance Services is here to break the act down and teach you how it differs in the state of California.
Currently, federal COBRA only applies to group health plans and employers with at least 20 employees. Extended coverage is only available to employees who:
While the individual retains health coverage for 18 months, he or she is required to continue paying premiums.
In California, a small company with two to 19 employees is able to keep employee benefits for as many as 36 months. Larger employers with at least 20 employees maintain medical coverage for 18 additional months after the federal COBRA coverage period expires. Under certain circumstances, such as divorce or death, federal COBRA can last as many as 36 months for a larger employer.
Those Who Aren’t Covered
It’s just as important to know who isn’t covered as it is to know who is covered. For both federal and California COBRA, individuals who are ineligible for enrolling include those who:
Talk with your employer to make sure you’re covered by COBRA, and ask if there are any alternatives available if you aren’t.
To learn more about COBRA and your other options for quality health insurance, contact us today at 707-823-3689.