Monday, August 24, 2009

COBRA Elections and Costs Accelerating

In January I blogged about the impact on COBRA the ARRA spendulous package would have. Evidence is emerging that COBRA elections have doubled on average and in savaged areas of the economy like manufacturing COBRA elections are up 800% according to a Hewitt survey.

Health Care reform is all over the news yet according to the Hewitt survey COBRA elections saw the smallest increase of any segment increasing from 10% to 12%. Why is that you might ask? It is due to the fact that employment remains strong in this economic segment and those who lose their job can find another.

I find it ironic that amidst the highest unemployment figures in the U.S. since the great depresssion and facing a recovery which the only economist who predicted the subprime meltdown predicts will be anaemic and below trend in advanced economies with a big risk of a double dip recession one who questions the wisdom of enacting central planning in the healthcare sector is dismissed as bearing false witness by the leader of the free world.

No comments: