When access to individual insurance without pre-existing condition exclusions became law, many thought this would reduce COBRA continuation coverage post employment. Now that the facts are better known about the value of individual plans including multi-thousand dollar deductibles and annual out of pocket exposure exceeding $6,000 single and $12,000 with dependents, expect COBRA coverage to continue to be a vibrant choice. It may be that the duration of time terminated employees remain on COBRA declines, but people will still sign up for COBRA post employment to avoid having to satisfy deductibles and out of pocket maximums all over again. COBRA will continue to be the coverage of choice at employers who maintain Platinum level benefits with expansive provider networks.
The COBRA coverage liability snake lives on in the age of Obamacare!