Large employers are usually self-insured. The insurance company just manages the plan, but the employer actually pays the medical claims out of pocket.
Offering indefinite COBRA means absorbing massive medical risk for people who no longer work for you and aren't providing value. Healthy ex-employees leave COBRA quickly for cheaper coverage, while those with heavy medical expenses stay as long as possible—so the company gets stuck paying for high-cost claims while only collecting basic premiums.
While some companies let retirees buy into a group plan, that's an earned perk to reward long tenure. Indefinite COBRA would give that same lifetime benefit to anyone, even if they worked there for only six months.
Large employers are usually self-insured. The insurance company just manages the plan, but the employer actually pays the medical claims out of pocket.
Offering indefinite COBRA means absorbing massive medical risk for people who no longer work for you and aren't providing value. Healthy ex-employees leave COBRA quickly for cheaper coverage, while those with heavy medical expenses stay as long as possible—so the company gets stuck paying for high-cost claims while only collecting basic premiums.
While some companies let retirees buy into a group plan, that's an earned perk to reward long tenure. Indefinite COBRA would give that same lifetime benefit to anyone, even if they worked there for only six months.