The ERISA Industry Committee (ERIC), a Washington, D.C.-based trade association representing America’s major employers, is urging Congress to avoid expanding the continuing health coverage requirements under the Consolidated Omnibus Budget Reconciliation Act for purposes that extend beyond its original intent. “The purpose of COBRA coverage is to prevent coverage gaps so that employees who leave their job can, for a limited time, continue to be insured while they seek alternative, permanent coverage. The purpose of the COBRA program is not, and should not be, to provide long-term, or permanent coverage,” says ERIC President Mark Ugoretz.

Meanwhile, The Commonwealth Fund, an independent foundation working toward healthcare reform, reports that few laid-off workers—only 9 percent—took up COBRA coverage in 2006. Unemployed workers who also lose their health insurance would need substantial financial assistance, covering 75 to 85 percent of their health insurance premiums, for their premium contributions to remain at the levels they paid while they were working, according to the report. “Americans are losing their jobs at an alarming pace and this report clearly shows that many people cannot afford to take on the expense of COBRA just as they lose their income,” said Commonwealth Fund President Karen Davis. “The number of uninsured Americans could grow markedly during this recession unless we take action to help unemployed Americans keep their health care coverage.”