
Aetna Insurance had promised Wall Street a 13.25% increase for 2008–2009.
They failed to deliver.
The economy cratered.
To counter that, Aetna released 2,800 employees.
But hidden in the details was COBRA health insurance.
Mark Bertolini was then president of Aetna and writes,
“COBRA is the federal law that requires employers to continue health coverage of terminated employees, who are also motivated to use additional medical care before that coverage is gone.”
As a result, costs exploded.
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