Which statement about California's continuation coverage (Cal-COBRA) is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Cal-COBRA is California's state continuation coverage law that extends coverage rights to employees of small employers — those too small to trigger the federal COBRA requirement — and to members of groups such as some associations that lack federal continuation rights. Where federal COBRA does not apply because the employer has too few employees, Cal-COBRA steps in so the departing employee does not lose group medical coverage. It supplements rather than replaces COBRA; large employers remain governed by the federal law. This state-level continuation program is a California-specific item within the group legislation coverage of the A&H outline.
Why the other options are wrong
- B) Cal-COBRA supplements federal COBRA for the small group market; it does not replace it for large employers.
- C) Cal-COBRA protects private-sector employees of small employers, not government employees only.
- D) Cal-COBRA is employment-based continuation coverage, unrelated to Medicare eligibility.
Memory hook
Cal-COBRA is COBRA's little sibling for the small employer COBRA cannot reach.