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State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5

Cal-COBRA differs from federal COBRA primarily because it:

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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. It grants continuation rights to employees of smaller California employers whose group health plans are not subject to federal COBRA, which generally applies to employers with 20 or more employees. Like COBRA, Cal-COBRA requires the former employee to pay the full premium. It is a California statute administered by the state, not a federal program, and it concerns group health coverage, not individual policies.

Why the other options are wrong

  • B) Cal-COBRA continuation coverage is not free; the employee pays the full premium for the continued coverage.
  • C) Cal-COBRA applies to group health plans of California employers, not to individually purchased health policies.
  • D) Cal-COBRA is state law, not a federally funded program; it fills the gap left by federal COBRA for smaller employer groups.

Memory hook

Federal COBRA stops at small employers; Cal-COBRA steps in for the little guys and keeps their coverage alive.

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State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5

Cal-COBRA, California's group health continuation law, applies to group health plans sponsored by employers with:

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Answer & full 3-part explanation (select an option above, or peek)

Why A is correct

Cal-COBRA extends continuation coverage to employees of California employers with 2 to 19 eligible employees, a market segment not reached by federal COBRA, which applies to employers of 20 or more. It allows eligible employees and covered dependents to continue group health coverage for up to 36 months after a qualifying event, paying the group premium. This state-law gap-filler is a distinct California-specific rule examined under AH-III.B.4, alongside federal COBRA and the other legislative influences on group medical coverage.

Why the other options are wrong

  • B) Employers with 1,000 or more employees are covered by federal COBRA, not the small-employer Cal-COBRA rules.
  • C) Cal-COBRA covers groups of 2 to 19 eligible employees; sole proprietors with no employees do not fit the statute.
  • D) Employers with 101 or more employees are served by federal COBRA because of their size.

Memory hook

Small shop (2-19) = Cal-COBRA; big shop (20+) = federal COBRA.

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