Subsidized COBRA enrollment lower than expected
NEWS IN BRIEF — Posted Oct. 25, 2010
Fewer than 2 million people took advantage of subsidized COBRA coverage provided under the 2009 stimulus act, according to a report released Oct. 14 by the Employee Benefits Research Institute. The government expected that 7 million people would opt for the subsidy. The report suggested that subsidized COBRA premiums still may have been unaffordable for many families.
The subsidy paid for 65% of the cost of COBRA health insurance for people who lost their jobs involuntarily between Sept. 1, 2008, and Dec. 31, 2009. The subsidy ended on May 31, 2010. On average, subsidized COBRA premiums in 2009 would have been $1,688 for employee-only coverage and $4,681 for family coverage. The institute's report is available online (link).
Note: This item originally appeared at http://www.ama-assn.org/amednews/2010/10/25/gvbf1025.htm.