Aetna Drops on Rising Costs for Dismissed Workers

According to Alex Nussbaum at Bloomberg, Aetna Inc., the third-largest U.S. health insurer, slipped the most in two months in New York trading after the company said it was spending more than expected on health benefits for workers who lost their jobs or feared dismissal.
The shares dropped 10 percent, or $2.52, to $21.88 at 4:15 p.m. in New York Stock Exchange composite trading, Aetna’s biggest one-day fall since March 5. The Hartford, Connecticut- based insurer said expenses were pushed higher by dismissed workers who continued buying insurance through the government- subsidized Cobra program, as well as those who ramped up medical treatment as firings loomed.

Will more health insurance carriers face the same troubles as Aetna or will this be a temporary set back for the insurance giant?

What stimulus package could mean for health care

With the House and the Senate working this week with the stimulus bill proposed by Barack Obama, many changes could come about for health care in the United States. One of the biggest is that newly unemployed individuals would be eligible for Medicaid.

Other incentives proposed with the $117 billion proposed for health care spending:

•$87 billion dollars to help states pay the costs of Medicaid, which provides medical care for the poor and disabled.

•$29 billion to help the unemployed pay for private insurance.

•$20 billion to implement new healthcare technologies, such as electronic medical records, aimed at improving care and cutting costs.

For more on the recent proposal, read the article here at the Christian Science Monitor.

Report Finds People Living on Unemployment Benefits Can't Afford COBRA

ABC's Lisa Stark reported today that most unemployed individuals and families are unable to afford the COBRA coverage for health insurance. COBRA allows laid-off workers to continue with their employee-provided health insurance. Many times this health insurance is far too costly to continue as making housing and food payments come first in the family budget. According to the article, Families USA found that workers nationwide would have to spend an average of 30 percent of their unemployment check to pay for insurance coverage for an individual, and an astonishing 84 percent of their unemployment check for health insurance for a family.

What do you think can be done to reduce the cost of this coverage? Will Daschle's appointment foster in a new wave of health insurance reform? Share your thoughts.