COBRA enrollment rates remain high even though laid-off workers aren't receiving any more federal help to pay for premiums.

June was the first month the federal COBRA subsidy program wasn't available to involuntarily terminated workers, but a study from Hewitt Associates shows one in five terminated employees was enrolled in COBRA coverage. This is almost twice as high as historical, pre-subsidy enrollment rates. The historical monthly average rate is 12 percent; Enrollment in June was 21 percent.

When looking only at the subset of workers who were involuntarily terminated and eligible for the COBRA subsidy, Hewitt's analysis showed the average monthly enrollment rate was 38 percent, with enrollments peaking in June 2009 at 46 percent. For May 2010–the last month that the subsidy was available–the COBRA enrollment rate for involuntarily terminated workers was 31 percent.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.