State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
California's Cal-COBRA continuation coverage is primarily intended for:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Cal-COBRA is California's continuation coverage law for group health plans of smaller employers, those generally not large enough to be subject to the federal COBRA rules that require continuation for employers of 20 or more. It extends the opportunity for eligible employees and dependents to continue group coverage for a limited period after a qualifying event, closing a gap left by federal law. Cal-COBRA is listed among the California laws affecting group medical plans.
Why the other options are wrong
- B) Self-funded ERISA plans are governed by federal rules; Cal-COBRA addresses insured group plans of small employers.
- C) Cal-COBRA concerns group health continuation, not Medicare Part D prescription coverage.
- D) Large employers are already covered by federal COBRA; Cal-COBRA fills the gap for smaller employers.
Memory hook
Cal-COBRA is COBRA's little-sibling law: continuation for the small shops that federal COBRA never reached.