Just how many employees are still seeking COBRA coverage now that the subsidy has ended?
More than one out of every five (21%) terminated employees enrolled in COBRA in June, the first month the COBRA subsidy wasn’t available.
That’s nearly twice as high as the average monthly pre-subsidy enrollment rate (12%). But it’s only slightly lower than the average monthly enrollment rate during the period that the COBRA subsidy was available to involuntarily terminated employees (25%)
Those stats come from a new Hewitt Associates analysis of 200 large U.S. employers, representing eight million employees.
Under COBRA, terminated workers may continue to receive their employer-sponsored health coverage (with no reduction in benefits) by paying 100% of the health insurance premium, plus an additional 2% to cover administrative fees. That translates to $8,800 a year for the average worker.
The COBRA subsidy, which was enacted in March 2009 and expired at the end of May 2010, only required eligible employees to pay 35% of the COBRA premium — roughly $3,000 on average.
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