COBRA benefits

Some patients have asked about COBRA which stands for the Consolidated Omnibus Budget Reconciliation Act of 1985. It is a law passed by the Congress that mandates an insurance program to give some employees the ability to continue health insurance coverage after leaving employment.

Employers qualify if they have 20 or more full time equivalent employees. Employees and their families can get COBRA benefits for some of the following reasons: (1) the death of the covered employee, (2) termination or a reduction in hours (which can be the result of resignation, discharge, layoff, strike or lockout, medical leave or simply a slowdown in business operations) that causes the worker to lose eligibility for coverage, (3) divorce, which normally terminates the ex-spouse's eligibility for benefits, or (4) a dependent child reaching the age at which he or she is no longer covered.

These are not hard and fast rules, but guidelines that may qualify a person for benefits.
COBRA does not require the employer to pay for the cost of providing continuation coverage and if a person wants to continue the coverage, they usually pay at their own expense.

There are exceptions to this and this can sometimes be a benefit as part of a golden parachute for corporate executives who get fired. An example according to the Wall Street Journal would be if Charles Schwab Corp. fires its CEO Charles Schwab, it would pay $32,561 for three years’ worth of healthcare and insurance. This I am sure would be a relief because with a net worth of $4.6 billion, Mr. Schwab couldn’t possible scrape together enough cash for a doctor visit.