What’s COBRA health insurance upshot after ObamaCare?

cobra health insurance

Experts have estimated that next year onwards health-law provisions could save U.S. employers billions of dollars for the compensation of ex-employees health-care. This is what Cobra health Insurance provides according to its act policy. Do you think, it’s good to have burden on employers after an employee has quit? Will it be cost saving or a financial burden? Ex-employees will no longer be the part of insurance plan, as cobra health insurance has its employees on the plan always after paying their premium.

The Consolidated Omnibus Budget Reconciliation Act of 1985, known as COBRA’s coverage is a burden for employers as well as participants.

cobra health insurance

What’s COBRA health insurance upshot after ObamaCare?
Photo Credit: (mccumberdaniels.wordpress.com )


“As soon as the law was passed, the question among employers and benefits people was: Is there still going to be a reason for COBRA?” said Steve Wojcik, vice president of public policy for the National Business Group on Health, an employer group. Offered a choice between heavily subsidized coverage in the health act’s insurance exchanges or paying full price under COBRA, he said, “Most people are going to choose the exchange.”

Who will be going to use insurance for long term? Why to pay for COBRA, now? It’s much expensive as the company cost sharing usually drops when workers depart, COBRA members pay premiums those are exceeding $5,000 per year for one person. “Employers hate it because it involves people on the plan who are no longer associated with the employer, and they cost more”,  stated by Paul Fronstin, director of health research at the Employee Benefit Research Institute.

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