- 401. General Information
- 402. Qualified Beneficiary
- 403. Initial General COBRA Notice
- 404. COBRA Qualifying Events
- 405. Retiree Benefit Plan Alternate Coverage
- 406. Leaves of Absence
- 407. Loss of Group Coverage in Anticipation of a Qualifying Event
- 408. COBRA Election Notice and Election Form
- 409. COBRA Qualifying Event Notification Responsibilities
- 410. Notice of Unavailability of Continuation Coverage
- 411. Election Period
- 412. Length of COBRA Coverage
- 413. COBRA Premiums
- 414. Gross Misconduct
- 415. Noncompliance Penalties and Fines
- 416. Open Enrollment Period
- 417. COBRA in Retirement
- 418. Loss of COBRA Continuation Coverage
- 419. Completion of COBRA Enrollment Forms
- 420. Dental/Vision COBRA Premiums
- 421. Insurance Plan Addresses
- View all Section 400
Attachments
- Attachment A - Initial General COBRA Notice
- Attachment B - COBRA Election Notice
- Attachment C - COBRA Continuation Election Form
- Attachment D - Notice of Unavailability of Continuation Coverage
- Attachment E - Initial COBRA Notice Log
- Attachment F - COBRA Election Notice Log
- Attachment G - Monthly COBRA Status Report
- Attachment H - COBRA Calendar
This Section provides information regarding continuation of group coverage for State’s dental and vision insurance plans. For enrollment processing information for the State’s medical plans, departments should contact CalPERS. For enrollment processing information for the State’s FlexElect Program Medical Reimbursement Account refer to the BAM Section 700.
401. General Information
The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a federal law. The COBRA statute requires that employers with 20 or more employees and maintain group health plans (includes medical, dental, and vision coverage) offer continuation of benefit coverage to covered employees, spouses, *domestic partners (*State of California Legislation, not federal law), and dependent children who lose group plan coverage due to a qualifying event. Group plan coverage can be continued for a maximum of 18 or 36 months depending on the qualifying event. Premiums are calculated at 102% of the total group rate and paid by the enrollee on a monthly basis to the plan.
Note: What is normally referred to as "COBRA coverage", technically is, "continuation of group coverage".
Departments are responsible for ensuring that covered employees and their eligible dependents are provided with COBRA information, required notices, and assistance in completing enrollment forms. The following standard operating procedures provide information to assist in accomplishing that task. Departments should develop internal procedures on how they perform the COBRA function.
The Internal Revenue Service (IRS) and Department of Labor (DOL) set COBRA terms & timeframes.
Departments must be aware that under the Americans with Disabilities Act (ADA) there is a requirement to make reasonable accommodations for disabled employees. Reasonable accommodation includes "appropriate assistance to interpret" notices, forms, and materials if requested (including covered non-employees).
This manual provides COBRA program information and instructions on three required COBRA notices: Initial General COBRA Notice, COBRA Election Notice, and Notice of Unavailability of Continuation Coverage. You can access these notices as fill and print documents on DPA’s Web site at www.dpa.ca.gov (click on Benefits, then click on Dental or Vision Insurance, under Related Forms). There is also general COBRA information available which includes frequently asked questions (click on Benefits,
then click on Dental or Vision Insurance, then click on COBRA continuation coverage).
Good Faith Compliance Standard
Authority
Federal Legislation (Public Law 99-272, Title X) Consolidated Omnibus Budget Reconciliation Act of 1985 (enacted July 1, 1986)
All departments should operate its COBRA function in "good faith compliance" with a reasonable interpretation of the statutory standards. To support the evidence of good faith compliance, departments should develop standard operating procedures, provide timely notices, keep copies of notices and election forms, train staff, and audit program.