Great Opportunity as COBRA Subsidies End
Wednesday, November 18th, 2009Posted by KT 11/18/2009
We all know the Golden Rule “treat others as you would want to be treated.” It is one of the first lessons we learn as kids; it is also something that most insurance agents take to heart while working with clients. It may have also been in the back of lawmakers’ minds when they passed legislature earlier this year to help individuals downsized keep their group health insurance through temporarily discounted COBRA premiums.
As most of us in the industry know, these subsidies will start to terminate November 30th for those who first took advantage of them in March. The government currently subsidizes 65% of the COBRA premiums. After the ninth month the COBRA rates jump back up to their normal level. According to the Kaiser Family Foundation, monthly rates for a family could jump from $377 to $1078, leaving many unable to afford their coverage. As a recent article in USA Today discussed, thousands of individuals across the country will begin making tough decisions over their health coverage in the coming months. This is where the opportunity lies for many health insurance agents around the country. Become an expert on the alternatives available and help your clients understand them.
