Most people are aware that COBRA is the continuation of your ex-employers current benefits program, for a period of 18, 29 or 36 months. This regulation was put in place in 1985, but with the advent of exchanges on January 1, and subsidies, does it make sense to keep it as an option? Only a low percentage of those eligible actually take COBRA- about 20% -and then tend to be very ill. Premiums are generally unaffordable as the employer is no long contributing to the cost of insurance.
Under ObamaCare, individuals that do not have employer-sponsored coverage will be able to go to the exchange, select a plan that may be more appropriate to their needs than the ex-employers plan, and probably get a “premium subsidy.” With health plans required to cover maternity, wellness and other benefits, premiums will undoubtedly rise more in the individual market then the group, but it may make COBRA obsolete.