Paperwork, paperwork! Make sure you do all the necessary Cal-COBRA / COBRA paperwork for your departing employees. First, here's a refresher on the basics.

The Consolidated Omnibus Budget Reconciliation Act of 1985 protects the rights of individuals who would otherwise lose group health coverage.

It requires employers to provide the opportunity for covered employees and their eligible dependents to continue health coverage at group rates (plus an administrative percentage) after certain qualifying events, including termination of employment or reduction in working hours.

Groups with 2-19 employees during at least half of the previous calendar year are subject to Cal-COBRA law under the state of California.

Cal-COBRA also applies to federal COBRA participants who have exhausted their coverage.

Employer Responsibilities

For Cal-COBRA, the employer must notify the health plan of the employees loss of group health care coverage eligibility within 30 days of termination of employment or reduction in hours. In some cases, an additional form is required. (See the forms section below.)

Health Plan Responsibilities

For small employers who fall under Cal-COBRA, the health plan acts as the administrator. The health plan notifies the subscriber of the availability of Cal-COBRA and handles the administration.

Groups with 20+ employees during at least half of the previous calendar year are subject to federal COBRA law.

The 20-employee count includes full-time employees plus each part-time employee counted as a fraction of hours worked per full-time workday or pay period. (For example, a part-time employee working 30 hours a week where full-time is 40 hours would count as 0.75 employees.)

Employer Responsibilities

For federal COBRA, the employer is responsible for notifying the employee of eligibility for COBRA and subsequent Cal-COBRA, if applicable, among other responsibilities.

We recommend using a third party administrator for COBRA. Most insurers have a reputable company that they work with. CobraServ and Ceridian are examples.

Using a third party adminstrator ensures that all the necessary notifications and paperwork are taken care of.

Read about federal COBRA...
 

Links to Forms

Blue Cross of California Small Group Information Change Form Blue Shield of California Employee Change Form Cal-COBRA Notification Form California Choice Login to the CalChoice website to find the appropriate forms. www.calchoice.com Health Net Notify Health Net of the cancellation of coverage in writing, either on the Current Membership and Membership Changes page on Membership Invoice or on your company's letterhead. Kaiser Permanente Employee Termination/Transfer Form COBRA Information and Form Please call Member Service Call Center at 1-800-464-4000 (toll free) for information on Cal-COBRA. Please see your insurance carriers' websites for other plans.