New Cobra law rattles insurance brokers

The new federal law that subsidizes Cobra payments for recently laid-off workers is causing turmoil for New York’s insurance brokers. The temporary subsidy for individuals means the federal government is paying 65% of Cobra’s health insurance premium for eligible individuals for up to nine months. But brokers are struggling with just what to tell their clients about how the new subsidy is being administered...

...“How are insurance carriers going to pay this? How does it affect companies? The brokerage community is asking if all this needs more clarity,” says Arthur DiMarco, a broker with Professional Group Plans in Cranford, N.J...

Crain's New York: New Cobra law rattles insurance brokers