California Life-Only & Accident and Health AgentCalifornia Law - Life and Accident & HealthMedium
A small business in California with 15 employees provides a group Accident and Health policy. An employee is terminated due to gross misconduct. This employee has been covered under the group policy for 3 years. Under Cal-COBRA, what is the maximum continuation period for this employee?
- A0 months, as termination for gross misconduct disqualifies them from Cal-COBRA.
- B18 months, as this is the standard continuation period for qualifying events.
- C29 months, due to the possibility of a disability extension.
- D36 months, as Cal-COBRA generally provides longer coverage than federal COBRA.
Show answer & explanationAnswer & explanation
Correct answer: A. 0 months, as termination for gross misconduct disqualifies them from Cal-COBRA.
Under both federal COBRA and Cal-COBRA, termination for gross misconduct is one of the few reasons an employee can be denied continuation coverage. Therefore, the employee is not eligible for Cal-COBRA.
Why the other options are wrong
- B. This is incorrect. 18 months is a standard period for other qualifying events, but not for gross misconduct.
- C. This is incorrect. A disability extension is for specific circumstances and does not apply if the initial qualifying event itself is disqualifying.
- D. This is incorrect. While Cal-COBRA can offer 36 months for certain events, gross misconduct disqualifies eligibility entirely.
Cal-COBRA Disqualifying Events
Specific circumstances under which an individual is not eligible for Cal-COBRA continuation coverage, even if they would otherwise qualify.
- Gross misconduct is a primary disqualifying event.
- Other coverage or Medicare enrollment can also disqualify.
- Employer must offer continuation unless a disqualifying event occurs.
Memory trick: Cal-COBRA's door, if misconduct you lore, will surely close, and open no more.