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Summary
The Consolidated Omnibus Budget Reconciliation Act (COBRA) allows job-lost employees to maintain health insurance. However, COBRA is often unaffordable and inaccessible for many workers, especially those with lower incomes.
Area of Science:
- Health Policy
- Economics
- Social Welfare
Background:
- The Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 provides continuation of health insurance coverage for individuals who lose their employer-sponsored health benefits.
- COBRA allows employees and their families to maintain coverage after job termination, death, or divorce.
Purpose of the Study:
- To analyze the accessibility and affordability of COBRA continuation coverage for American workers.
- To identify barriers preventing workers, particularly low-income individuals, from benefiting from COBRA.
Main Methods:
- Analysis of COBRA provisions and their impact on different income groups.
- Review of existing literature and policy documents related to COBRA.
Main Results:
- COBRA continuation coverage is often prohibitively expensive for many individuals and families.
- The policy's cost and eligibility requirements create significant barriers, limiting its benefit to a substantial portion of the workforce, especially low-income workers.
Conclusions:
- COBRA, while intended to provide a safety net, is not universally accessible or affordable.
- Policy revisions may be necessary to ensure COBRA effectively serves vulnerable populations and fulfills its intended purpose of maintaining health insurance access.