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Survey: New COBRA subsidy will increase costs

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in Human Resources

Six of 10 employers anticipate that their health care costs will increase as a result of the new federal COBRA subsidy law, says an Aon Consulting survey.

Among those, 40% predict cost increases between 1% and 5%; another 40% expect costs will jump between 6% and 10%; 12% foresee increases of 11% to 15%; and 8% expect a jump of 16% or more.

Reason: While the government will reimburse employers for 65% of COBRA premiums, the new law paves the way for more COBRA enrollees and higher administrative costs. 


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