Posted: 03/16/09
Employers can expect to see a significant surge in the number of COBRA enrollees due to the signing of the February 2009 stimulus bill, according to many industry experts. Under the new plan, employees laid off from September 1, 2008, through December 31, 2009 are eligible for a 65 percent federal subsidy of their COBRA premiums for up to nine months or until becoming eligible for coverage in another employer's plan or for Medicare.However with the unemployment rate still dropping, the cost of even subsidized COBRA coverage may be too much for some families when you consider that traditional monthly COBRA premiums ran about $400 for individual coverage and $1,200 for family coverage.
Another fact to consider - past research has shown that those who do enroll in COBRA are more likely to make extensive use of medical services, and therefore have more out-of-pocket expenses that are not covered. Uninsured families who use their COBRA coverage extensively or those who can not or choose not to maintain coverage do have another money-saving option. A discount medical card can help offset extra out of pocket expenses or provide discounts when services are necessary.
With tight times likely to continue, a discount medical card is becoming an increasingly popular option.
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Workforce: Employers Prepare for Surge in COBRA Enrollees
