COBRA is a 1986 federal law that allows people who would otherwise lose their health care insurance through an employer to retain their former health insurance for up to 18 months.Department of Labor: FAQs About COBRA Continuation Health Coveragea Originally billed as a benefit to those who have lost their jobs, the increasing cost of health care has made COBRA unaffordable for many Americans.Families USA: COBRA Key Findings (January, 2009)
COBRA was created to provide a sort of safety net for those who have recently found themselves out of work and are thus no longer covered by their employer's health insurance policies. It allows individuals, along with their qualified beneficiaries (including dependents or anyone else who was covered on the policy while the individual was still employed) to receive benefits that are identical to those provided by the employer at a reduced cost. Only those who once received health insurance through their jobs are eligible to participate in the COBRA plan.http://www.sib.state.ok.us/ics/PDFfiles/COBRA.pdf
As part of the American Recovery and Reinvestment Act of 2009 (ARRA), the federal government is temporarily covering 65 percent of the costs of COBRA for qualifying employees and their dependents.
On April 15, 2010 President Barack Obama signed an $18 billion dollar bill to extend ARRA benefits for individuals who have recently lost their jobs. Included in the bill is an extension of the COBRA health insurance subsidy through June 1, 2010. The program generally provides coverage for 26 weeks, but many Americans have remained unemployed for longer than this, hence the extension. The president also indicated that he would like to ultimately see these benefits extend to the end of 2010.http://ifawebnews.com/2010/04/16/congress-approves-cobra-subsidy-extension-lifeline-to-unemployed/
Quotes
"COBRA health coverage is great in theory and lousy in reality...For the vast majority of workers who are laid off, they and their families are likely to join the ranks of the uninsured." — Ron Pollack, Executive Director of Families USAKansas City Star: More laid-off workers can't afford COBRA (January 9, 2009)
Extended COBRA Benefits
In this video you can hear an explanation of the recent extension of COBRA benefits. The extension is intended to help those who find themselves out of work beyond the 26 week benefit limit, many of whom can not afford to pay for health care on their own. Other unemployment benefits have been extended in addition to the COBRA program.
References
Fast Facts
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Fact:
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Qualifying events for COBRA include
Layoffs, unemployment, divorce, death of a spouse and a few other reasonsDepartment of Labor: FAQs About COBRA Continuation Health Coveragea
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Fact:
COBRA benefits last for up to 18 months after the qualifying event occursDepartment of Labor: FAQs About COBRA Continuation Health Coveragea
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Fact:
For a family of four, 84% of unemployment check, on average, is needed to pay for familyCOBRA benefitsFamilies USA: COBRA Key Findings (January, 2009)
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Fact:
In nine states COBRA benefits costs would, on average, exceed a family's monthly unemployment benefitsFamilies USA: COBRA Key Findings (January, 2009)
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Fact:
46 million people are estimated to be without health insuranceFamilies USA: COBRA Key Findings (January, 2009)
