EXTEND RETIREES' COBRA RIGHTS

WHEREAS, COBRA (the Comprehensive Omnibus Budget Reconciliation Act of 1985) obligates employers to offer continuous health insurance coverage for retirees and their dependents or to previously covered survivors of the insured, upon payment of an annual premium of not more than 102 percent of the group rate; and

WHEREAS, continuation rights expire at a maximum of 36 months or when the insured becomes eligible for Medicare, whichever comes sooner; and

WHEREAS, a retiree or survivor whose continuation rights have expired prior to eligibility for Medicare must seek health insurance as an individual and thereby incur an excessive financial burden; and

WHEREAS, an individual health insurance policy may be severely limited in coverage of a "pre-existing condition" that would have been covered under the former employer's policy:

RESOLVED, that AFT support the extension of COBRA rights for retirees and previously covered survivors not eligible for equal or better coverage under another group plan until Medicare eligibility is attained.