What Is COBRA Insurance?
California Group Health Plan

Do you know what COBRA means to you? The California Group Health Plan offers you the choice of continuing your group coverage by paying the total premium of your health insurance plus a two-percent administrative fee. COBRA is offered to qualified individuals who are leaving a company with a minimum of 20 employees. The California Group Health Plan Cobra coverage will allow you an extension of up to 18 months and sometimes can be extended to 36 months. This will ensure you and your family are covered until you are enrolled in a new health plan.

COBRA offered through the California Group Health Plan offers you the same coverage as your former employer by paying full premium. This includes the amount you contributed to the insurance plan and the amount your employer contributed. There is a two-percent administration fee that is added. You must exhaust your COBRA eligibility with the California Group Health Plan before applying for HIPAA eligibility.

There are some advantages and disadvantages to continuing California Group Health Plan COBRA insurance. The advantages are that you will typically have better benefits. You also are guaranteed coverage for a minimum of 18 months, and it counts as credit for HIPAA purposes.

There are certain disadvantages of continuing COBRA coverage with the California Group Health Plan. Continuing this plan is expensive. You must pay the full amount of your premium as well as the two percent administration fees. Another distinct disadvantage is the limited amount of time you are covered. If you develop a disease during the time you are covered by COBRA, your choices may be limited once your COBRA plan expires.

Who should continue COBRA coverage with their employer? If you or someone in your family has a preexisting health condition you should consider continuing your coverage through COBRA and the California Group Health Plan. It is difficult to get private health insurance for a preexisting condition and can be expensive. If you do find a private health insurance, usually the preexisting condition is excluded from coverage, or the premiums would be higher.

You should also continue COBRA coverage through a California Group Health Plan if you know your next employer does not have a health plan. This will give you important time to find a private group health plan. If you are young and healthy with no serious health problems, you may want to shop around for temporary health insurance coverage instead of choosing COBRA. It is important not to have any gaps in your health insurance coverage to avoid paying higher rates for a new policy.