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

…we urge you to be sure that these proposals don’t take away the incentive for unemployment claimants to accept part time and temporary jobs when permanent jobs are unavailable. At present, claimants resist such jobs, because earnings from 2 or 3 days of work will often disqualify them from any unemployment benefits. If claimants] lose their health insurance for weeks in which they are disqualified from unemployment benefits, they will have even less incentive to accept work when it is available.

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Eric J. Oxfield, Employee Benefits Attorney, U.S. Chamber of Commerce, Testimony, Senate Finance Committee.
04/21/1983 | Full Details | Law(s): COBRA

Private insurance must be the vehicle for benefit coverage. This new program must not become enmeshed with Medicare and Medicaid. Caution must be expressed lest new troubles be created through expansion of an entitlement concept.

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

...we remind you that unemployment compensation is not a poverty program. Some claimants have substantial assets. For example, 1979 income tax records reflect more than 1 ½ million tax returns reporting adjusted gross income of $20,000 or higher and also receipt of unemployment compensation. Moreover, when unemployment benefits are combined with other income-support programs, some claimants actually come out better than when they were working.

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Eric J. Oxfield, Employee Benefits Attorney, U.S. Chamber of Commerce, 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