iblessyah@yahoo.com Wrote:
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> With COBRA you pay the entire premium but it is at
> the rate the employer was paying instead of what
> it would be if you started fresh. Usually much
> less expensive for better benefits than you can
> get out on your own for the same money. I was
> manager of group underwriting for Blue Cross Blue
> Shield in a previous life. lol
While this is correct in normal times, there is currently a federal subsidy in place that covers 65% of the employer's cost of the insurance for COBRA folks. The employer takes it as a tax credit on their payroll taxes. The program started early last year (I think) and was to cover the unemployed for the first 9 months. This has been extended due to the lack of improvement in unemployment statistics and is likely to be extended further. It is not in the interest of anyone to have the enormous numbers of families unemployed suddenly become uninsured as well because insurance is not affordable. COBRA still takes a significant chunk out of what a person gets from unemployment, but in most cases it is still manageable.