Scan Medical Insurance - Why is the goverment throwing 21 Billion dollars at a Cobra subsidy?

Why is the goverment throwing 21 Billion dollars at a Cobra subsidy?

The Federal Government is throwing $21 billion to subsidize the cost of continuing health care insurance for the involuntarily unemployed under the COBRA program for 9 months. Don't you think we'd be better off using that money toward finding ways to decrease the cost of care by nipping costs at the source? It's only a temp fix, what about after the 9 months is up? Cobra inflates back up to 100% even up to 103% of original premium rates (I know this because I work in insurance)? http://www.ocregister.com/articles/cobra-insurance-job-2313922-health-lost After 18 months of Cobra people are forced to pay costs for guarantee issue conversion policies (or portability) which cost nearly the same unless they are able to qualify through medical underwriting. http://answers.yahoo.com/question/index;_ylt=ArFSvkBvHyWoUi96et0TI2bsy6IX;_ylv=3?qid=20090324060144AAbq2v6 Basically, throwing away money for a 9 month fix seems redundant and wasteful. Pat--after 9 months people WILL lose it anyways. What's the difference? In a way it's encouraging people to USE USE USE their healthcare while they have it....what do you think that's going to do to the cost of care? It works just like supply and demand. Similar concept. I'm sorry Pat, I can see your point, I just cannot agree with it. It's a redundant waste as far as I'm concerned. People will drop it after 9 months and then the cost of care will rise even more. It's like spreading the fire. Connor--exactly, Consumer driven healthcare is what the future of this country needs to look at. HDHP with HSA's. That way it's used and not abused. Supply/Demand, costs will deflate.

Public Comments

health insurance- yeah what a waste that's two months of money wasted in iraq. Lets cut THAT
A long-term fix is desirable, but the costs of not doing a short-term fix too are that a lot of people might lose their insurance. Reply: The difference is 9 months. As once once learned rather unpleasantly while changing jobs, being uninsured can be very expensive (and COBRA, while worthwhile, can be quite expensive). Any relief from those costs will probably help a lot of unemployed people right now. We don't know what things will look like in 9 months - maybe some health care changes are in the works that will change things for families, or perhaps if unemployment is very high, he may extend it further. I am (fortunately) employed now, and would happily pay more taxes to help keep families from going bankrupt because of the need for medical care. I think it's our duty as a society to handle this kind of thing - I am not set on COBRA particularly if there's another better solution, but this doesn't seem like a terrible stopgap and I think it will help a lot of people, whether it actually only lasts 9 months or if it's extended.
cause the gov't is run by a bunch of fucking retards who need to get their heads out of their asses!
I have no clue. Why did they vote on the stimulus bill without even reading it first.. maybe they think it will help people..
When it comes to politics...it's one snake to another...
government never makes any sense anymore....21 billion wow...and i thought the economy was bad..
Barry is pandering to his base......Let the free market solve the health care problem, the main problem is no one knows how much things costs and don't shop around for medical services (HSA helps)...Under a free market structure there is no reason to believe that prices would not fall like all other items after time and innovation.....Look at Laser Eye Correction Surgery....When the medical industry starts to compete for customers, prices for services will go down. Services and products will also improve because profit drives innovation. It is better to let the consumers decide for themselves what medical treatment to get, rather than letting a government agency decide. Choice gives us power.