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

Many options already exist to provide unemployed persons with health insurance or protection against health care costs. These include: continuous coverage provisions in many employer-paid health care plans; the conversion privilege offered in many of these same plans: coverage under a spouse’s or other relative’s plan; and the social safety net, Medicaid.

-
Jan Peter Ozga, Director of Health Care, U.S. Chamber of Commerce, Testimony, Senate Finance Committee.
04/21/1983 | Full Details | Law(s): COBRA

All told, some 16 million or more jobs will be needed in the next seven years. The statistics on the recovery from the 1974 recession indicate that such job creation is achievable. The major problem is to accomplish this goal through sound economic recovery and growth without increasing inflation or discouraging hiring by adding to labor costs.

-
Jan Peter Ozga, Director of Health Care, U.S. Chamber of Commerce, 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.

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

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…”

-
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