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 also oppose those proposals that would increase employers’ labor costs. Mandating through tax penalties that employers carry laid-off workers for some specified period or open health plan enrollment to spouses, or contribute to an assigned-risk pool, would place them in double financial jeopardy. Employers’ response could be to drop their health care plans altogether and/or lay off more workers.
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.
…the chamber remains committed to sound policies that will improve the economy and promote employment. We also remain committed to promoting the solvency of the States’ beleaguered unemployment insurance fund….First, the problem of lack of health insurance for the unemployed will abate as the economy continues to improve and unemployment is reduced. A continuation of the trend toward a reduction in taxation, regulation, and interest rates will help to achieve the dual goal of fuller employment and protection against health care costs.
…we oppose Federal financing for such programs [that provide health care for the unemployed], since Federal deficits are already at record high levels. We also oppose new entitlement programs that have the potential to become open-ended. Some proposals amount to welfare programs without appropriate means tests.
