New evidence that COBRA is not effective
Spencer's Benefits Reports 2009 COBRA, by Wolters Kluwer Law & Business, reports that less than 10% of the people who became eligible for an extention of health insurance throught the COBRA law actually signed up for coverage. Cost of coverage is suspected to be the primary deterent. We think it if fair to draw a conclusion from this finding that COBRA is not a significant health insurance solution for those who lose group insurance coverage. Next year's survey results are likely to be higher due to a 65% cost subsidy from the federal government but the increas is not likely to be impressive enough to change our conclusion.