COBRA

COBRA

What we commonly refer to as COBRA, short-term health insurance for the unemployed, was included in the Consolidated Omnibus Budget Reconciliation Act of 1985.   It grants workers and their families the option to keep their group insurance health benefits for up to 18 months (although the exact time may vary depending on a number of factors). COBRA enables a worker to purchase health insurance through their ex-employer, if they are subject to a “qualifying event”, even though they no longer work there. A qualifying event includes the end of employment for any reason other than “gross misconduct”, or a reduction in work hours (again for anything other than gross misconduct). Only employers with 20 or more workers are subject to COBRA.

Cry Wolf Quotes

Let us go on the record as saying we believe that this program should be temporary. Clearly, we share with the chairman [Senator Bob Dole] the belief that the general economy is not by tomorrow going to turn upside down, and during the time in which it takes to do that, this program should be in place. But it should indeed be temporary. It should have a limited scope. Indeed, we are not in a position in this country today to institute another Cadillac-care program when it is not necessary…Certainly we do not wish to see this become another entitlement program…”

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Dr. James Sammons, of the American Medical Association, Joseph F. Boyle, M.D., Chairman of the Board of Trustees, American Medical Association, Executive Vice President and Harry Peterson, Director, Testimony, Senate Finance Committee.
04/21/1983 | Full Details | Law(s): COBRA

We believe that the experience of the last few years teaches that in addressing problems of health care financing we should try at all costs to avoid the establishment of new Federal or State bureaucracies and regulatory regimes. We, further, should avoid the creation of new Government entitlement programs, the addition of new financial burdens on the Federal Health care budget, or the distortion of the marketplace by eliminating choice or reducing competition in health care.

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Don Bliss, Esq., National Association of Manufacturers, Testimony, Senate Finance Committee.
04/21/1983 | Full Details | Law(s): COBRA

As we devise legislation of this kind, my observation through the years has been that we tend to work at the Federal end of the chain. We will put the money in the Federal end, and it’s almost always on the assumption that the party at the very other end gets his full cost. If there ever was a circumstance under which you wanted the various parties and participants to share, this is the circumstance. I would again come back to fostering and leaving opportunities open for encouraging initiatives on the part of the insurance underwriters, providers, and communities to share in the cost of this problem. Don’t make it so easy. Don’t just give 100 percent Federal money. Somebody has got to start giving on the chain.

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Bruce Cardwell, Executive Vice President, Blue Cross/Blue Shield Association, Chicago,Testimony, Senate Finance Committee.
04/21/1983 | Full Details | Law(s): COBRA

…we think that intervention should be limited….Our experience tells us that through Blue Cross and Blue Shield and also through a good deal of coverage offered by the commercial carriers there are opportunities for individuals who have been laid off to avail themselves of insurance of one kind or another in many cases.

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Bruce Cardwell, Executive Vice President, Blue Cross/Blue Shield Association, Chicago,Testimony, Senate Finance Committee.
04/21/1983 | Full Details | Law(s): COBRA