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We all know that losing your job can really throw a wrench in your plans, especially when it comes to keeping your health insurance.
Luckily, COBRA coverage is here to help you stay insured while you’re navigating this tricky time.
If you happen to be in California, you’ve got options to stick with your health plan through COBRA or Cal-COBRA.
If you decide to sign up for COBRA in California, make sure to act quickly. You’ve got 60 days from when your job-based coverage ends to enroll in COBRA. Your employer or their insurance company should send you the details you need to sign up.
If you don’t see that info come through, don’t hesitate to reach out to your former employer’s HR department.
And don’t fret if you’re on the fence about whether COBRA is the right fit.
You can also explore options available through Covered California.
They could have plans that might cost you less than COBRA premiums.
Key Takeaways
- You have 60 days to enroll in COBRA after losing job-based health coverage.
- Your former employer should provide COBRA enrollment info.
- Check out Covered California for alternative health insurance options alongside COBRA.
Getting To Know COBRA Coverage in California
COBRA and Cal-COBRA let you keep your health insurance after leaving a job, but they come with different rules and timeframes you should be aware of.
COBRA vs. Cal-COBRA: What’s the Difference?
COBRA stands for the Consolidated Omnibus Budget Reconciliation Act, a fancy title for a federal law that lets you keep your group health plan when you lose your job or have your hours cut.
Cal-COBRA is simply California’s take on this law.
If you worked for a company with 20 or more employees, COBRA is likely your ticket.
But if your employer had 2 to 19 employees, you might be better off with Cal-COBRA.
With COBRA, you typically maintain your coverage for 18 months.
If you go with Cal-COBRA, you can stretch that out for another 18 months, giving you up to 36 months of coverage in total.
Who Can Qualify for COBRA and Cal-COBRA?
To qualify for COBRA, you need to have been covered under your employer’s group health plan and experienced a qualifying event, like losing your job or having your hours cut.
Cal-COBRA has similar criteria, requiring you to have coverage through a small employer in California.
Qualifying events can include job loss, reduced hours, divorce, or turning 26 and aging out of a parent’s plan.
Both programs require you to sign up within 60 days of your qualifying event, and yes, you’ll be responsible for covering the full premium, plus a small administrative fee.
Keep in mind that these options are meant to be temporary.
You might want to look into alternatives like Covered California for long-term coverage that might better suit your needs.
How to Enroll in COBRA Coverage
Getting signed up for COBRA in California involves a few important steps.
You’ll need to understand the enrollment process, select a plan, and get a handle on the costs involved.
The Enrollment Journey
After you lose your job, your employer is required to inform you about COBRA within 14 days.
You’ll receive an election notice detailing your rights.
Don’t forget, you have 60 days to decide whether you want to opt in, based on when you receive the notice or when your coverage ends—whichever is later.
To enroll, fill out the form included in your election notice and send it back.
Just make sure it’s postmarked by the deadline! Otherwise, you could miss your chance to get COBRA coverage.
The great thing about COBRA is that you get to keep the same health plan you had while employed.
This means you can continue seeing your regular doctors and using the same hospitals.
Picking Your Health Plan
So, you’ll keep the plan you had through your job with COBRA, but if you’re interested, you can switch your coverage during open enrollment—just like when you were working.
It might be a good idea to compare COBRA to other health plans available through Covered California.
Consider factors like:
- Which doctors and hospitals are in the network?
- What services are covered?
- How much will it cost you?
Covered California has a handy tool to help you shop around and compare plans, which can really help in deciding if sticking with COBRA or opting for a new plan is the best route.
Understanding Costs and Financial Help
Let’s be honest—COBRA can be expensive.
You’re on the hook for the full premium now, plus a 2% administration fee.
Your old employer won’t be contributing anymore.
Your monthly premium might shock you; it’s often much higher than what you paid while employed.
But guess what? It’s usually less than buying a similar plan on your own.
You may also find some assistance from your state or former employer to help with the COBRA costs.
Some companies even chip in to cover part of the COBRA expenses for a limited time.
If COBRA’s price tag gives you a headache, check out Covered California.
You might qualify for financial aid that could make your health insurance significantly cheaper than what COBRA offers.
Your FAQs About COBRA Coverage
Understanding COBRA coverage in California comes with specific rules and timelines, so let’s simplify it for you!
Who Can Get COBRA Coverage in California?
If you worked for a company with 20 or more employees, you’re in the clear for COBRA coverage.
If you’ve lost your job or had your hours cut, you might qualify.
Plus, your spouse and kids may also be eligible.
Can I Sign Up for California COBRA Online?
Most of the time, you won’t enroll in COBRA online in California.
Typically, you’ll receive a physical packet in the mail.
Fill that out and send it back—no digital shortcuts here!
What Do I Do to Start COBRA Coverage After Leaving My Job?
Once you leave your job, your employer should notify you about COBRA.
You’ll get a packet with all the necessary info.
Fill out those forms and return them.
Remember, you have 60 days to decide whether you want COBRA.
Miss the deadline, and you could be out of luck.
If you have questions about how to enroll in COBRA, just give your former employer’s benefits department a shout.
It’s key to submit your forms and payment on time to avoid any lapses in your health coverage.
Do Employees Automatically Get COBRA, or Do They Need to Opt In?
You need to opt in to get COBRA—it’s not automatic.
You have to actively choose to enroll and pay for it.
How Long Can I Keep COBRA Coverage in California?
Usually, COBRA coverage lasts up to 18 months, but sometimes you can get it for longer, depending on why your job ended.
What’s the Enrollment Window for COBRA After Leaving a Company in California?
You’ve got 60 days to sign up for COBRA after leaving your job.
This is referred to as your election period.
Just don’t let that deadline sneak up on you, or you might lose your chance to get coverage.
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