COBRA Subsidy Expected to be Costly

A recent survey conducted by Aon Consulting predicts that health care costs will escalate as a result of the new federal COBRA subsidy.

Even though the subsidy will reimburse employers for 65% of their COBRA premiums, it paves the way for more COBRA enrollees, due to unemployment, and greater costs associated with administering the subsidy and communicating its detals to employees, explains Aon.

In addition to to higher overall health care costs, the subsidy will lead to potentially higher-than-expected employee contribution rates for heatlh care coverage in 2010.

Almost 60% of employers of 300 employers surveyed expect their overall health care costs to rise because of the COBRA subsidy.

From this you could say that if you have elected COBRA benefits as a former participant of a Employer Sponsored Health Care Plan, you may expect your health insurance costs to escalate dramatically.

We find that in most cases, high quality coverage is available to individuals and families that is less expensive than those commonly found with COBRA benefits.

There are some dangers and pitfalls that you assume if you elect COBRA benefits. We would be pleased to discuss your individual situation with you in confidence.

Dennis Bukantis Marketing provides medical insurance products from financially strong companies. We consider the quality insurance products that we offer as permanent coverage, something that COBRA is NOT.

For a short primer on COBRA benefits, please click on the COBRA button on the Home Page of this site.

As always, we offer complete Online Medical Insurance Services, from the initial proposal right through to finalization and delivery of your new policy. Above all, we know that your experience will be like none other! Let us know how we may serve you.

Thanks for dropping in to the Insurance Newsroom today!

Dennis