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Tuesday, January 05, 2010

Two Cents Short, Company Tried To Cancel COBRA Benefits


This is one of our editors’ picks from our ongoing roundup of Investigations Elsewhere.

As the recession pushes more Americans to rely on COBRA, the federal program that lets laid-off workers pay to (they’re not really purchasing it), since they already have it keep their employer-provided health insurance for up to 18 months, The Miami Herald’s John Dorschner looks at how well the program works through one particularly trying case.


The stimulus included an initial $24.7 billion to subsidize the cost of premiums paid by laid-off workers for their COBRA benefits. But Dorschner found that above and beyond the cost of premiums, people eligible for the COBRA program can struggle to keep their benefits.

2 comments:

Anonymous said...

Are you kidding M&T bank has been doing it for years

Anonymous said...

i frequently deal with the company mentioned in the article for work. they are horrible. this is a common story for most cobra administrators. they will even cancel someone who hasn't violated their "rules". i beleive the man called 100 times. i usually see articles about people who can't afford cobra, but rarely see anything on the problems with it. until it directly affects an individual, they don't realize what's going on out there.