Government may subsidize COBRA!

Used with permission

Someone who knows someone who knows a lobbyist close to the stimulus package talks tells Workforce Management that Congress may be considering a 50% to 60% subsidy of COBRA premiums for employees who lose their jobs. The subsidy would last 18 months, the maximum time workers can maintain COBRA through their ex-employers.

One of the biggest complaints about COBRA has long been that it’s too expensive — particularly for workers who suddenly find themselves out of work and/or need to cover their entire families. However, health industry experts also lament that Americans have been sheltered from the true cost of health care and coverage, which is why COBRA induces such sticker shock.

Should the government subsidize COBRA premiums? For how long? President-elect Obama seems to lean in favor, WM reports.