Many Americans can not afford health insurance with COBRA subsidies

11:05 AM
Many Americans can not afford health insurance with COBRA subsidies -

money Fewer Americans than expected took advantage of the COBRA subsidy recent that was provided by the federal government. One report indicates that although the government offered a subsidy of 65 percent, not many people enrolled in COBRA after losing their jobs.

The average cost coverage for a family more than $ 13,000 per year, which means it still costs about $ 5,000, even after the subsidy kicked in.

Benefits Research Institute employees studied the COBRA program and said the number of people who took advantage of the grant was much lower than expected.

The Institute said in a recent publication that the number of people who took the government's offer was disappointing and believe that the cost of the program was the cause.

This is certainly not good news for those who support the reform of health care because it relies on subsidies to help people afford insurance when the individual mandate Medicare requires Americans to buy coverage in 2014.

the purpose of the grants is to help Americans who can not afford the cost of health insurance. Although COBRA tends to be more expensive coverage, this may be an example of what is to come if people can not afford health insurance in a few years.

Participation in high-risk pools was also lower than expected, which may also be due to the costs and unemployment.

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