While we strongly simpathize with the plight of the unemployed, subsidizing COBRA would be a mistake. The effect could significantly drive up claims costs to the employer’s plan. Former employees with health problems would find it much easier to stay on COBRA, incurring claims for 18-36 months that affect renewals and claims costs for the former emplyer. Is this what we want to do to employers who are already faced with spiraling health care costs? No easy answer here…
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