Subsidy has doubled COBRA rolls
August 24, 2009 by Bill MeltzerPosted in: COBRA, Health care, Latest News & Views, Pay and benefits
When the feds announced the COBRA subsidy everyone expected a large percentage of ex-employees to take advantage of the program.
But few predicted just how popular the 65% subsidy would be. In fact, the nation’s COBRA rolls have doubled since the subsidy took effect, according to a new Hewitt Associates report.
From March 2009 through June 2009, the average monthly COBRA enrollment rate for eligible Americans was 38% – compared to a 19% monthly enrollment rate from September 2008 through February 2009.
Tags: COBRA
August 27th, 2009 at 10:25 am
It’s only natural that the subsidy has grown with the ever increasing unemployment rate at 9.7% now. The statistics speak for themselves not to mention the fact that former employees need health care and this is the only way they are going to get it. Also seeing that there is no public option run health care, again, it is a no brainer!
August 27th, 2009 at 12:11 pm
This is how “free” healthcare will cause expenditures to run much higher than the solons in DC figure it will. Medicare was never in the wildest estimates to reach the current expenditure levels, estimates on this subsidy were way low, “cash for clunkers”, etc. Politicians are not smart enough to figure out the future of entitlements and how “popular” they migh become, and therefore what it will cost.
The solution is for politicians to quit handing out freebies, especially when there is no money in the till. FICA is broke. Ditto Medicare, Medicaid, PBGIC, Fannie, Freddie and FHA. It has to stop or the entire economy will go the way Argentina, Zimbabwe and other bankrupt nations have.
August 27th, 2009 at 2:13 pm
Harry, Harry, Harry….spoken just like a true republican. First of all, COBRA is NOT free and has to be paid for by those using it. Those paying for it have to pay for it and at a pretty hefty rate, more than what was being paid by either them or their employer.
Medicare has been successful in providing health care for the elderly and the disabled with insurance that they would have otherwise never had. If it had not been for my mother having Medicare when she had her first heart attack and the hospital costs incurred because of it, the ongoing doctors bills, etc., she would have had to file for bankruptcy because the costs were so astronomical. Medicare worked fine until she passed away back in November. Please come off of your high horse and do not tell me that Medicare does not work. The only time it has not worked is when Bush signed into legislation the prescription drug option allowing the “donut hole”.
Speaking of politicians handing out freebies, all the money (over $902 trillion currently) that Bush spent on an unnecessary war could have been used to fund healthcare for the greatest majority of the 47 million who do not have any health care. Based on what your political affiliation is depends on what you feel is the most important issue government money is to be spent on: Check out what we “could have had” had Bush not chosen to go into a war of choice:
http://www.nationalpriorities.org/
Just in my state of Texas, this is what we could have had:
Taxpayers in Texas will pay $74.8 billion for total Iraq and Afghanistan war spending since 2001. For the same amount of money, the following could have been provided:
17,092,144 People with Health Care for One Year
Kind of puts it into a totally different perspective….
August 27th, 2009 at 3:13 pm
She’s right Harry.
One of the things I hate to see is people talking about how everything Government-run is broken – yet they are the last to suggest an alternative. If you truly disagree with all of these programs, then start suggesting an alternative and quit your complaining!
Although I have a number of issues with the way the Government runs certain programs, I try to keep my comments to myself except to where I can make a suggestion or two. I have done so by emailing my State Senator, my local Congressman and President Obama. They may listen or not – the main point is that instead of sitting on the sideline and complaining about everything (something the Republican Party is very good at doing), I am taking my talk to those who will be happy to hear my suggestions. Hopefully, they will consider some of them, but if they don’t, at least I am happy with the fact that I provided them with my feedback instead of doing what a lot of Republicans are now doing against Obama – COMPLAINING!
August 28th, 2009 at 10:31 am
I have to agree with Harry…..at least partially. Those wacky legislators that we elect and re-elect consistently underestimate the common sense onf the common folks. We know a good deal when we see one. If we have the option to elect COBRA with the employer paying 65% of the premium, who wouldn’t take it especially given the high cost of health insurance, if you can even get it.
“Cash for clunkers” is another example. When the government decided to subsidize up to $4,500 on the purchase price of a car, a whole lot of folks decided to take the deal.
We also gat a great deal from Fannie Mae and Freddie Mac. With no downpayment and no credit check required, we got great deals on homes. Some of us may still be in the.
Most of us pay into Medicare and Social Security, but I’m not counting on it for my “golden years”.