California Laws Regarding Cobra and Maternity

Keeping up with the laws pertaining to health insurance, coverage and benefits has quickly become a requirement to being an informed citizen.

As medicine evolves in our culture and technology changes the way the healthcare system, as a whole, is orchestrated, it becomes more important to keep your knowledge of insurance benefits current. Beginning in January of 2003, all COBRA benefits in the state of California will be extended for 36 months to all beneficiaries. Groups with 20 or more employees, including part-time employees, will receive Federal COBRA for the first 18 moths and Cal COBRA after that.

A company that has less than 20 employees will be eligible for Cal COBRA throughout the entire 36 month time span. Groups numbering more than 20 will need to be flexible. For the first 18 months, the employer will be responsible for ensuring COBRA is administered and for collecting and documenting the beneficiaryıs premiums.

After the first 18 months, and for the rest of the benefit period, the administration will be taken care of by an insurance company. This insurance company must be informed that the participant will be Cal COBRA eligible when the transition occurs.

Employees are also required to notify their carries when their COBRA status changes from COBRA to Cal COBRA or the other way around.
The Maternity Parity Act was introduced in July of 2003. Deductibles or co-pays for maternity will be exempted and maternity will now be treated as any other illness. As a result of course, some benefits and rates will change. Blue Cross of California, for instance, will implement these changes in April of 2003.

Please note that these are new California state laws and carriers must be aware of them so that they may pass benefits on to you and your loved ones.