CalCOBRA vs. Federal COBRA
Overview.
| CalCOBRA for California |
Federal COBRA |
1. For groups with 2-19 employees
|
1. For groups with 20 or more employees |
| 2. CoPower will administer CalCOBRA unless the employer
chooses to administer it. |
2. Employer administers COBRA plan |
| 3. Employees pay CoPower directly |
3. Employees pay their Employer directly. |
| 4. Fee is Cost of Benefits + 10% |
4. Fee is Cost of Benefits + 2% |
| Once an employee is established as either
Cal or Fed COBRA, their status doesn’t change. |
| COBRA coverage is only applicable for Dental
and Vision coverage. |
Definitions.
CalCOBRA Coverage in California (for groups with 2 to 19 employees).
It is the carrier’s responsibility to administer CalCOBRA enrollees, therefore CoPower, acting on behalf of the carrier administers the CalCOBRA accounts. The applications are sent to the former employees (or those whose hours no longer qualify them for the plans) and the enrollee’s send their applications and payment back to CoPower. CoPower charges the member an additional 10% to administer the CalCOBRA. The responsibility of administering Cal-COBRA falls on the carrier, or on CoPower (who administers for the carrier) but groups may choose to administer Cal-COBRA if they prefer but they must do so for all their employees. New enrollees as of 1/1/03 in CalCOBRA will be eligible for up to 36 months of coverage for all qualifying events. (AB1401).
Federal COBRA Coverage (for groups with 20 or more 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 
