A&H Policy ProvisionsQuestion 295 of 315

A California employee works for a small employer with 15 employees and loses coverage due to termination of employment. Federal COBRA does NOT apply because the employer has fewer than 20 employees. What is the employee's CONTINUATION right under California law?

a.No continuation right; small-employer employees lose group coverage entirely upon termination
b.Federal COBRA still applies regardless of employer size
c.Cal-COBRA under California Insurance Code §1366.20 et seq. (and Health & Safety Code §1373.621 for HMOs) provides up to 36 months of continuation coverage for employees of small employers (2-19 employees) whose group health plan is fully insured by a California insurer or HMO
d.The employee receives 6 months of continuation, after which Medi-Cal automatically enrolls them

Explanation

California's 'mini-COBRA' (Cal-COBRA) statutes — California Insurance Code §1366.20 et seq. for insurers and Health & Safety Code §1373.621 for HMOs — fill the gap for small employers (2-19 employees) that are NOT subject to federal COBRA. Cal-COBRA generally provides up to 36 months of continuation coverage following a qualifying event (longer than the federal COBRA 18-month period for termination/reduction in hours). For employees who exhaust federal COBRA at a larger employer, Cal-COBRA may also provide an additional period bringing the total to 36 months. Option A is wrong; California fills the COBRA gap. Option B is wrong; federal COBRA applies only to employers with 20+ employees. Option D fabricates an automatic Medi-Cal trigger that does not exist.

Law Reference: California Insurance Code §1366.20 et seq.; CIC §1373.621 (Cal-COBRA / mini-COBRA)

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