Continuation coverage lets people keep their group health coverage for a limited time after they would otherwise lose it, such as after a layoff or a divorce. The person pays the premium.

Federal COBRA does not apply if the employer normally had fewer than 20 employees on a typical business day in the preceding calendar year. Maximum periods: - 18 months: the employee's termination of employment or reduction in hours - 29 months: extension for a qualified beneficiary found disabled - 36 months: other qualifying events, such as divorce or a child ceasing to be a dependent Premium: up to 102% of the applicable premium. Example: $800 x 1.02 = $816.

Cal-COBRA covers insured plans of California employers with 2 to 19 eligible employees that are not subject to federal COBRA. Termination of employment, other than for gross misconduct, is a qualifying event, and coverage can run up to 36 months. Premium: up to 110% of the group rate (Example: $500 x 1.10 = $550). A beneficiary determined disabled may be charged up to 150%, after the first 18 months of continuation coverage.

After federal COBRA runs out: a health insurer must offer someone who exhausted federal COBRA, when COBRA gave less than 36 months, the chance to continue under Cal-COBRA terms for up to 36 months from the date continuation began (§10128.59(a)). Example: 18 months of COBRA plus 18 more months equals 36.