Cobra Health Insurance in California: What You Need to Know

If you are one of the many Californians who has recently lost their job or had their hours reduced, you may be concerned about how to maintain your health insurance coverage. Luckily, there are options available to you, including Cobra health insurance. In this article, we will give you all the information you need to know about Cobra health insurance in California, including what it is, how it works, and how to enroll.

What is Cobra Health Insurance?

Cobra health insurance is a federal law that allows you to continue your health insurance coverage after you lose your job or have your hours reduced. Cobra stands for the Consolidated Omnibus Budget Reconciliation Act, which was passed in 1985 to provide a safety net for individuals who lose their health insurance due to a qualifying event, such as job loss or reduction of hours.

Under Cobra, you are able to continue your employer-sponsored health insurance plan for a certain period of time, usually up to 18 months. However, you will be responsible for paying the entire cost of the premiums yourself, as your employer will no longer be contributing.

Who is Eligible for Cobra Health Insurance in California?

To be eligible for Cobra health insurance in California, you must have been enrolled in your employer-sponsored health insurance plan at the time of your job loss or reduction of hours. You must also have had a qualifying event, such as being laid off or having your hours reduced. In addition, your employer must have 20 or more employees to be subject to the Cobra rules.

If you meet these eligibility requirements, you should receive a notice from your employer within 14 days of your job loss or reduction of hours informing you of your right to continue your health insurance coverage under Cobra.

How Does Cobra Health Insurance Work?

When you elect to continue your health insurance coverage under Cobra, you will be responsible for paying the entire cost of the premiums yourself. This includes both the portion of the premiums that you were previously paying as well as the portion that your employer was contributing.

While the cost may be higher than what you were previously paying, Cobra can be a good option if you need to maintain your current health insurance coverage, especially if you have ongoing medical needs or have dependents who rely on your health insurance.

How Much Does Cobra Health Insurance Cost in California?

The cost of Cobra health insurance in California can vary depending on the specific plan you were enrolled in and how much your employer was contributing. However, on average, you can expect to pay around 102% of the total premium cost.

This means that you will be responsible for paying not only your portion of the premiums, but also the portion that your employer was previously contributing. You may also be subject to an administrative fee, which can add up to 2% to the total cost of your premiums.

How Do I Enroll in Cobra Health Insurance?

To enroll in Cobra health insurance in California, you must notify your employer within 60 days of your job loss or reduction of hours. Your employer will then provide you with information about how to elect Cobra coverage and the cost of the premiums.

You will typically have 45 days from the date of your election to make your first premium payment. After that, you must make your premium payments on time each month to maintain your coverage.

What Happens When My Cobra Coverage Ends?

When your Cobra coverage ends, you will have to find another health insurance option. You may be eligible to enroll in a health insurance plan through Covered California, the state’s health insurance marketplace, or you may be able to obtain health insurance through a new employer if you have found a new job.

It’s important to note that if you have a pre-existing condition, you cannot be denied coverage under Cobra or any other health insurance option in California.

Cobra Health Insurance Frequently Asked Questions (FAQ)

Conclusion

If you have recently lost your job or had your hours reduced in California, Cobra health insurance may be a good option for maintaining your health insurance coverage. While you will be responsible for paying the entire cost of the premiums yourself, it can be a good option if you have ongoing medical needs or dependents who rely on your health insurance. Be sure to notify your employer within 60 days of your job loss or reduction of hours to enroll in Cobra coverage and make your premium payments on time each month to maintain your coverage.