With the National Focus back on Health Care it prompted me to write about a specific flaw I think that exist in the system. Cobra coverage and it’s negative, after affects it leaves on a company and it’s Health Care plan.
Don’t get me wrong. Cobra is a necessary bridge for an employee that has lost their job for any reason and needs the safety net that Cobra provides for them and their family. But, should every former employee be eligible for Cobra? I think not.
A bit of background. We had an employee quit Advancement in October 2007 to start their own company. A noble endeavor. However, they started this company two months before they quit, using information obtained from my company. I sued this person and we settled out of court for an undisclosed sum. At the same time this individual signed up for Cobra ( Advancement’s plan ) and remained on it for the legal limit, 18 months. Without knowing any of the details, there have been claims by this individual.
Now we are up for renewal for the company’s medical plan. Because of our claims history, including those on Cobra, we are faced with a significant increase in premiums in the coming months. Cobra claims were among the highest in our company in this last policy year.
My point is, given the circumstances I just described, should every former employee be eligible for Cobra? After almost two years, I feel this individual unjustly continues to penalize this company and it’s employees.
Yes, changes need to be made and I feel this is just one example.