What does Consolidated Omnibus Budget Reconciliation Act of 1985 mean? Read on to discover the definition & meaning of the term Consolidated Omnibus Budget Reconciliation Act of 1985 - to help you better understand the language used in insurance policies.
Consolidated Omnibus Budget Reconciliation Act of 1985
A federal law giving workers and their families who lose their health insurance benefits after leaving a job the right to continue receiving those benefits. COBRA requires that group health insurance plans sponsored by employers with 20 or more employees in the prior year offer employees and their families an opportunity for a temporary, 18-month extension of health coverage, when such coverage would normally end. Qualified individuals must pay the entire premium that would otherwise be paid by the employer, plus a 2 percent administrative fee. Generally, only about 10 percent of workers eligible for COBRA benefits elect them, usually because they are unable to afford the cost following the loss of a job.
We hope the you have a better understanding of the meaning of Consolidated Omnibus Budget Reconciliation Act of 1985.