Killing the Much-Hated COBRA
One of the most popular aspects of the Affordable Care Act’s online Marketplace, which allows the uninsured to shop for their own plans, will be the likely death of COBRA, as Kaiser Health News reports. Not only will laid-off workers catch a break by buying on the exchange, but also the self-insured businesses who ended up paying the hospital charges of COBRA enrollees.
COBRA is an arcane system for former employees that lets them keep their employer-based insurance if they pay both parts of the premium. Because it’s so expensive, only those with the highest health risks tend to keep paying for it.