COBRA qualifying events and elections, 1987-1991

Area of Science:

• Health Economics
• Public Policy
• Insurance Studies

Background:

• The Consolidated Omnibus Budget Reconciliation Act (COBRA) was the first national employer mandate addressing job-loss related health insurance gaps.
• Understanding COBRA's utilization is key to evaluating its effectiveness and informing future health policy.

Purpose of the Study:

• To analyze the incidence and characteristics of COBRA coverage between 1987-1991.
• To examine COBRA election rates based on qualifying event types and individual demographics.
• To provide data for designing future portable health insurance systems.

Main Methods:

• Analysis of two unique datasets covering the period 1987-1991.
• Estimation of the number of adults using COBRA.
• Calculation of COBRA election rates by qualifying event type.

Main Results:

• An estimated 1.3 million adults aged 40-64 utilized COBRA in 1988.
• 22% of individuals experiencing qualifying events elected COBRA coverage from 1987-1991.
• Family-related qualifying events had higher COBRA election rates than work-related events.

Conclusions:

• COBRA provided essential health insurance continuity for a significant population.
• Election rates varied by event type, suggesting different needs or awareness levels.
• Study findings support the development of more portable health insurance solutions.