COBRA

The COBRA law was designed to keep working families insured after a layoff or after changing jobs. One of the problems with the law is that there are no enforcement procedures should an employer violate the law. The law requires an employer to notify an employee that he or she has a right to purchase the health insurance at the same cost that the employer pays.

Many people are unaware of the law and even after they are informed about the law they often run up against a brick wall trying to find out what amount they need to pay, who they make the payments to and other such practical issues.

Many employees are never notified that COBRA exists and that they have a right to purchase the coverage. Even if they are aware of the coverage, many employees feel it is not their responsibility to provide this information. Since the employee is often no longer working for the employer, he has no leverage to deal with an uncooperative employer.

Until the law is changed, giving the former employee some rights that he or she can enforce, this law will continue to be an illusion to many.