U.S. House Bill Would Throw Away COBRA Coverage Restriction
Legislation that was introduced last year in the U.S. House of Representatives is finally making some headway among lawmakers.
The bill, named the Health Insurance for Life Act, would allow people to purchase COBRA coverage until they turned 65 years old and became eligible for Medicare.
COBRA allows employees who leave their jobs to continue their employer-sponsored health coverage, at their expense.
Current law allows workers to keep COBRA insurance for no more than 36 months, reported the Chicago Sun-Times.
U.S. Representative Mark Kirk argued that taking off the length of coverage restriction would protect people with pre-existing health conditions that might not be able to find a plan in the private market.
The problem with COBRA coverage? It can be very expensive. When employees leave a job, COBRA gives them the right to continue benefits with their former employer, but they must pay the entire the premium themselves.
Typically, COBRA costs a few hundred dollars a month.
“[A]t least we’re saying you can choose to remain insured,” said Congressman Kirk.
