COBRA (federal Consolidated Omnibus Budget Reconciliation Act of 1986)
and OBRA (federal Omnibus Budget Reconciliation Act of 1989) require employers to
offer eligible employees and their eligible dependents (who would otherwise lose
group coverage under specified circumstances called "qualifying events.") the
opportunity for a temporary extension of CSU medical, dental and vision coverage
at 102 percent of group rates.
Examples of "qualifying events" are:
California Law (AB1401)
- Termination of employment (for reasons other than "gross misconduct") or
reduction in hours (less than half-time) that results in loss of eligibility
- Disability as determined by Social Security Administration (29 months)
- Divorce or legal separation (36-month maximum applies to spouse)
- Dependent child reaching age 23 or marrying (36-month maximum)
- Provides additional COBRA coverage so that total (federal and California)
COBRA coverage can be a maximum of 36 months.
- To qualify, individuals must have:
- began federal COBRA coverage on or after January 1, 2003; and
- exhausted all federal COBRA months.
- Employee receives 18 months of federal COBRA coverage (based on
termination of employment).
- Employee can then elect to receive another 18 months coverage under
- Total coverage (federal and California)=36 months
- Premiums are 110 percent of the group rate.
- Applies only to medical coverage (not dental or vision).
- Employees must apply for the extension directly with the insurance carrier
or HMO prior to the expiration of federal COBRA coverage.
Guide » (.pdf)
COBRA Rates »
March 5, 2007