Rant of the Day: Why is COBRA Paperwork so freaking complicated?
In a move that is very unlike me, I’ve been checking my actual snail mailbox every single day since I lost my job, and that is because I was anxiously anticipating the arrival of my COBRA paperwork. Boring, yes. A pain in the ass, yes. Glamorous mail? No. But necessary, especially since I got into a debacle with the front desk at my allergist, as they were initially unaccepting of my explanation that COBRA is retroactive to the date that coverage was terminated. Eventually I exercised my intellectual muscle and got what I wanted (but had to sign a form saying that I would pay if the insurance company didn’t).
But this is the problem, COBRA is too complicated for the average person. Even my doctor’s office can’t figure it out.
The Consolidated Omnibus Budget Reconsolidation Act (COBRA, for short, and about as friendly as said reptile) is a throwback to the Reagan Era, and was passed in 1985. Although the act contains multiple other amendments to the federal laws, it is best known for its requirement that employers be denied tax deductions unless they meet certain continuing health care coverage requirements for their employees. On February 17, 2009, President Obama signed into law the American Recovery and Reinvestment Act of 2009 which offers a 65% subsidy to employers for 9 months following an employee’s termination if the employee’s termination fits into certain defined circumstances. The revision is undefined and unclear in many places, but has the net effect of reducing the premium for which the terminated employee is responsible for 9 months if the termination was voluntary.
Anyway, when I received my COBRA paperwork this Monday I ran upstairs and ripped open the envelope like it was Christmas morning, only to be instantly disappointed: 14 double sided pages, single spaced, courier 10 font. It instantly gave me a headache. My head was swimming. It was 11:00 pm and I didn’t have the patience to go through all of this information.
I looked at them again the next day with fresh eyes. The forms themselves are not complicated. Its a lot of check here, sign here, initial here nonsense. But what is complicated is figuring out which options to pick and what you are eligible for. Claim the wrong thing and you might owe taxes (which isn’t a horrible thing, but can be jarring if you are unprepared for it, especially when one is on limited resources to begin with). I consider myself to be an educated person, so I can’t imagine what it would be like trying to go through what is 14 single spaced, courier size 10, double sided pages of information attempting to decide whether to elect or not elect COBRA coverage, delay or not delay COBRA coverage, figure out if I’m an “Assistance Eligible Individual” or not. While now more than ever I appreciate the latest revisions to the Consolidated Omnibus Budget Reconsolidation Act , the complexity of the paperwork makes it virtually impossible for even an educated person to maximize their benefits without assistance from tax, and human resources professionals.
The good news is my forms are completed and have been sent off. I can breathe a sigh of relief, I will have health insurance again. Thank Christ.
As I am a lawyer, and I know better than to give advice for things that I know absolutely nothing about, I have no tips besides common sense for navigating COBRA paperwork. Look at it when you’re not tired, read through the entire thing, try not to get overwhelmed. But, legally, I’m not stupid enough to try to advise you. But take a look at these links. If you’re in the situation where you have to fill out COBRA paperwork, and are confused, these could help, they helped me!
Helpful Links:
- Department of Labor – COBRA website
- www.cobrainsurance.com — Questions and Answers
- Navigating COBRA After the Passage of the American Recovery and Reinvestment Act
** The actual content of COBRA, i.e., the high cost of premiums after 9 months (or even during the 9 months since) is a subject for another post. Its in my opinion, simply a portion of the argument as to why we this country needs some form of Universal Healthcare.
