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Personal Finances / Credit Cards and Consumer Debt
|Subject: Re: Poll: E-fund||Date: 5/11/2013 2:08 PM|
|Author: aj485||Number: 307019 of 308643|
A better use of COBRA, IMO, would be to cover medical insurance premiums for a short time while the person looks for work.
I'm not sure I understand what you mean by 'using COBRA to cover medical insurance premiums'. While COBRA was named for the budget bill (Consolidated Omnibus Budget Reconcilation Act) that made the right to continue to receive medical coverage from an employer into law, there is no government funding for COBRA. It's strictly between the employer and those who lost insurance coverage.
COBRA requires employers who offer medical coverage to offer medical insurance to former employees and the employee's dependents at up to 102% of the employer's cost for insurance, with the extra 2% as an incentive to help the employer with administration costs, so employers wouldn't drop medical coverage because they had to offer COBRA. Depending on why the insurance coverage was lost, there can be different timeframes that COBRA can be in place.
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