![]() A qualifying employer is generally an employer with 20 or more full-time-equivalent employees. However, the legislation was subsequently amended to instead impose an excise tax upon an employer whose health plan fails to satisfy the applicable rules. Because of the discrepancy between the official name of the Act and the year in which it was enacted, some government publications refer to the Act as the Consolidated Omnibus Budget Reconciliation Act of 1986.Īs originally enacted, Title X of the Act provided that a qualifying employer will not be permitted to take a tax deduction for its health insurance costs unless its health insurance plan allows employees of the employer and the employee's immediate family members who had been covered by a health care plan to maintain their coverage if a "qualifying event" causes them to lose coverage. Tooltip Public Law (United States) 99–272, 100 Stat. The violation for failing to meet those criteria was subsequently changed to an excise tax.Īlthough this statute became law on April 7, 1986, its official name is the Consolidated Omnibus Budget Reconciliation Act of 1985 ( Pub. The law deals with a great variety of subjects, such as tobacco price supports, railroads, private pension plans, emergency department treatment, disability insurance, and the postal service, but it is perhaps best known for Title X, which amends the Internal Revenue Code and the Public Health Service Act to deny income tax deductions to employers (generally those with 20 or more full-time equivalent employees) for contributions to a group health plan unless such plan meets certain continuing coverage requirements. COBRA includes amendments to the Employee Retirement Income Security Act of 1974 (ERISA). Congress on a reconciliation basis and signed by President Ronald Reagan that, among other things, mandates an insurance program which gives some employees the ability to continue health insurance coverage after leaving employment. The Consolidated Omnibus Budget Reconciliation Act of 1985 ( COBRA) is a law passed by the U.S. Signed into law by President Ronald Reagan on April 7, 1986.Reported by the joint conference committee on Decemagreed to by the Senate on December 19, 1985 ( 78-1) and by the House on March 20, 1986 ( 230-154).Passed the Senate on November 14, 1985 ( 93-6).Passed the House of Representatives on October 31, 1985 ( 238-183 with amendment).Committee consideration by House Committee on Ways and Means, United States House Committee on Education and Labor, United States House Committee on Energy and Commerce, House Committee on the Judiciary, Senate Committee on Finance.3128 by Daniel Rostenkowski ( D– IL) on July 31, 1985 Introduced in the House of Representatives as H.R.
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